The Hindu : New Delhi News : Sheila flayed for power tariff proposal

Online edition of India's National Newspaper
Thursday, Jun 03, 2004

New Delhi

New Delhi

Sheila flayed for power tariff proposal

By Sujay Mehdudia

NEW DELHI, JUNE 2. There has been all-round criticism of the Delhi Chief Minister Sheila Dikshit's reported proposal to levy power tariff on the basis of categorisation of various areas in Delhi under the Unit Area Method (UAM) regime. Damning it as absolutely illogical and impractical, experts have pointed out that no such practice exists in any part of this world and that the move is aimed only at gaining public sympathy for the powers that be before imposing a tariff increase on the Capital's already overburdened consumers.

According to sources in the Delhi Government, no such proposal, formal or informal, has been sent to the Delhi Electricity Regulatory Commission (DERC) by the Delhi Government; the proposed classification by category - under which the charges for power consumption in the Capital's affluent areas would be much more than for similar consumption in other areas -- apparently is the brainchild of Ms. Dikshit. The Chief Minister, it is believed, has floated this idea in a bid to project itself as the protector of the poor and thereby escape strong criticism in the case of a major increase in the power consumption charges that is expected to happen any time now.

"If the Government wants to have this kind of tariff in place, it should have sent a formal proposal to DERC. It also has to take a policy decision and give directions to the regulatory body in this regard. No such thing has happened and the Chief Minister is only indulging in kite-flying diplomacy in a bid to play to the galleries,'' a senior official remarked today.

Interestingly, while the Chief Minister has talked of a power structure based on categorisation of the various areas, the State Power Department has no knowledge of any such proposal having been discussed or formally written about. Officials say they were taken aback by the reported assertions of the Chief Minister as no such structure exists in any part of the world. The new tariff order is likely to come into effect from July 1 when the privatisation of power will complete two years with a question mark over the success of reforms in this sector. The performance of the power distribution companies, especially the Ambani-owned BSES, has left much to be desired and the same can be said about the Government-controlled Transco that is faltering on laying a network of 220 KV lines.

The remarks of the Chief Minister on this kind of categorisation came after her meeting with the DERC Chairman, V.K. Sood, last week. It is learnt that the two discussed the power tariff hike that is likely to come this month-end.

"It is impractical. In fact, Ms. Dikshit also knows this and has just floated the idea to take Delhiites for a ride. It is an illegal and anti-people step and the BJP would strongly oppose any such move,'' the Bharatiya Janata Party secretary, Vijender Kumar Gupta, said.

Interestingly, the UAM for property tax has been worked out and is being implemented by the Municipal Corporation of Delhi. As for the power tariff, it is fixed by the DERC after going through a number of procedures and formalities including inviting objections from the general public also. Experts feel that the first priority of the power companies and the Delhi Government, that is a 49 per cent stakeholder, should be to provide qualitative and quantitative power to the lakhs of consumers across the Capital. The Government has no right to impose additional burden on the people of Delhi when the situation on the power front is depressing and shows no sign of improving, they pointed out. The Delhi Government has come in for harsh criticism from various quarters for not doing enough to ensure accountability by the power distribution companies and not approaching the DERC against those who have been found guilty of not spending the funds earmarked for augmentation of the power supply and distribution system.

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