PANJIM: Already hit by the increased power tariffs, Goans will have to shell out more for the electricity they use, with the Goa government contemplating an annual hike in power rates ranging from 14 per cent in 2016-17 to 11 per cent in 2018-19. The decision comes as the government is reeling under huge financial losses in the sector, which will touch around Rs 1,300 crore in the next three years.
This was highlighted in the joint statement issued by the Union Ministry for Power and the State government, wherein Goa has been selected for implementing the ‘24×7 Power for All’ programme. The government aims to connect all domestic consumers with electricity connections by 2019.
“The State’s existing financial utility is already poor due to a gap in Average Billing Rate (ABR) and Average Cost of Supply (ACS). Goa may face a cumulative loss of Rs 1,367 crore by the end of financial year 2018-19,” the document says.
“The amount can be recovered if Goa gets weighted average tariff increase on ABR for all consumers by 14 per cent and 13 percent in FY 2016-17 and 2017-18 respectively and 11 per cent in FY 2018-19,” it added.
Earlier this year the government faced severe criticism after it hiked the power tariff by nearly 11 per cent. Though the government claimed that its rates are lower compared to any other part of the country, the consumers unhappiness forced the government to reduce the tariff to some extent.
The Union Ministry has stressed on the need for the State Electricity Department to analyze its losses after segregating its transmission and retail business and meet regulatory requirement for benefiting from approval of required tariff. “Segregation of utility and financial audit will help Goa in planning towards financially viable power distribution business,” the document stated.
As per information, State has planned to undertake nearly Rs 2300 crore worth of investment towards network addition and augmentation in transmission and distribution system. Apart from this it has planned an additional Rs 1300 crore investment through Government of India sponsored schemes.
