There is a view that tariffs must rise if you want power sector to grow, and reform is synonymous with tariff hike. Your views.
I believe the technical and commercial losses of the discoms need to come down to below 15%. A paying consumer should not be asked to pay for inefficiencies of the discoms or for the theft. Allowable losses while fixing the tariff should not be more than 15%. Once you do that, the price of power, which consumers pay, will come down. We will do this by talking to the regulators and laying guidelines in the law. We are anyway giving all support to discoms to strengthen their network.
If they are asking for higher tariff, that is because they have not tried to control their losses. Controlling losses is not so difficult. Manipur brought its losses down from 58% to 26% in just one and a half years. All they did was, install prepaid meters everywhere. The major problem, which we see, is in the metering and the billing, not in recovery after billing, because recovery after billing is 90-95%.
How will you ensure 24×7 power supply to consumers?
I am thinking of fixing a date by which we will begin making power supply a service obligation. Once we have this obligation, if discoms resort to load shedding, they have to pay a penalty. If there is a disruption because of an act of God or a technical glitch, fine. But gratuitous load shedding because you don’t want to buy electricity will not be accepted. Read More…