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Cabinet to take up Electricity Policy

Our Special Correspondent

KOLKATA, SEPT.25. The Cabinet will shortly take up the National Electricity Policy (NEP) which is expected to address issues such as cross-subsidies, Union Power secretary R.V. Shahi said.

Addressing a Conclave on Electricity Act (EA) 2003 , he said that shortly after the NEP gets the Cabinet's nod, the Tariff Policy would also be put up. The framing of these two policies were important as they were expected to address many areas of concern arising out of the EA 2003 at various fora.

"No legislation is ideal and we may take periodic reviews of the hurdles and the bottlenecks faced along the way, but these two statutory documents (the tariff policy and the electricity policy) will address many contentious issues'', Mr. Shahi said urging the assemblage to give the new legislation a degree of certainty. The conclave was organised by the Forum of Scientists, Engineers & Technologists

On cross subsidies, he said that the Act recognises its need and does not favour immediate elimination. It has left the matter to the respective electricity regulatory commissions (ERCs) to gradually reduce the cross-subsidy element under which tariff rates are pegged at higher bands for certain categories of consumers (like industry) so as to provide cheap power to other categories (like farm sector or low-end domestic consumers)

However, he turned down the suggestion made earlier by the West Bengal Power Minister Mrinal Banerjee that states should be consulted by ERCs on tariff fixation. "That would be setting back the law and would send wrong signals'', he said.

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