Saturday, September 1, 2012

Power tariff hike in Delhi is highly unjustified

Power tariff hike in Delhi is highly unjustified

Four hikes in a space of 10 months. Who can justify this.

The 26 per cent hike in power tariff in Delhi which came into effect from July 1 this year is highly unjustified. According to reports in papers this was the fourth hike in power tariff in the past 10 months. August last year it was raised by 22 per cent followed by 5 per cent in February this year and 2 per cent in May. And this was rounded up with another 26 per cent hike.

I was not in the national capital so was not aware about any protest breaking out on this issue. But the regulator who has the final word on the tariff hike seems to have a cakewalk and been given a free hand. Most residents of National Capital believe that ever since power distribution went to private hands the hikes have been highly unjustified and irrational. At one end the govt. underscores the need to check inflation and at other end it gives the regulator the freedom it least deserves as far as bringing a power tariff hike is concerned.

Most residents believe that power regulator has secured enough leverage and is making the most of it. It paints a picture where the combined deficits of discoms is huge and there is no other way to bring the deficits down than resorting to a power tariff hike. There can be a middle road . First you hiked it by 22 per cent, followed it by 5 and 2 per cent and finally coming to a mammoth 26 per cent. All in a space of one year. Delhi residents need to take this battle to its logical end and see that a course correction is undertaken. That is highly unlikely and only an intervention of an effective nature coming from residents including those residing on rent is urgently required by uniting and showing displeasure that it is not only hurting them but even those coming from outside and trying to find medical treatment and work here.

 For a household which used to get a power bill in the range of 3500 to 4500rs or even less than that, the power bill comes nowadays showing that such and such household has been consuming more units than earlier effectively translating into a bill of rs 7000 and above. In the past the units consumed would have been less or within a  stipulated limit to keep the bill in the 3000 to 4500 level. Are we to believe that the surge in units consumed gets disproportionately high in one particular month or disproportionately high once the power hike comes into effect? If you intend to continue with this fallacy, the returns that you expect to bring a turnaround to your fortunes will never happen. At least in a country like ours you should be honest and deliver for people for whom you are expected to serve. Regulator can't have the final word. Right from those on a limited salary to those coming to Delhi for work, medical treatment, business and other activities - all and all of them are bearing the brunt of an unjustified and irrational power tariff hike. People are furious because of other factors including inflation. Don't take their patience for granted.

From rs 3 to 3.70 for every unit up to 200 units and from rs 5.70 to 6.40 for every unit for above 400 units. This is steep and few would approve of this. A middle ground is not hard to find.

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