'Power companies cannot pass the burden to consumers'

AERC hearing on power tariff hike

STAFF REPORTER

GUWAHATI: Consumers of all hues got across a clear message that power companies should not pass the burden on power consumers to make up their revenue loss accrued due to inefficiency, delay in the project, transmission and distribution (T&D) loss, establishment cost etc., on their part.

APDCL's (Assam Power Development Corporation Ltd) proposal to hike power tariff by around 23 per cent came up for the final hearing at the AERC (Assam Electricity Regulatory Commission). AERC Chairman Kumar Sanjay Krishna and the two members heard the objections and grievances of all the parties concerned.

Talking to The Sentinel, the AERC Chairman said, "I heard all views, both of power companies and that of the petitioners. We will finalize the new power tariff by keeping in mind the views of the petitioners and the power companies. We will study the previous performances of the power companies while fixing the new power tariff. We will also see what problems afflict them and why projects get delayed? We will also see how much additional power they buy to meet the T&D loss. We will see if the power companies purchase power at a high cost and sell them at lower prices during off-hours. Many such issues need due attention."

Eight organizations submitted their petitions. Two of them failed to turn up. A few public were also present at the hearing.

The APDCL, AEGCL (Assam Electricity Grid Corporation Ltd) and the APGCL (Assam Power Generation Corporation Ltd) tried to justify why the power tariff hike is necessary. They say that the rise in production cost due to the rise in coal and gas prices, domestic customers outnumbering commercial customers by far, etc., have widened the revenue-expenditure gap. The state has around 66 lakh power consumers – 45 per cent domestic and 25 per cent industrial and commercial consumers. The APDCL has to purchase power from outside at higher rates to meet the demand in peak hours.

Talking part in the hearing, FINER said, "The power companies cannot pass the burden of the loss accrued due to inefficiency on their part to the consumers. The power companies pay scant attention to the timely completion of their ongoing power plants. Distribution loss is a major issue. The current power tariff rate in the state is higher than that of many other states. The power companies need to reduce the operation and maintenance costs also."

ABITA said, "Power production in the state is much less than the installed capacities of the power plants. The transmission loss is also very high. The efficiency as a whole is not up to the mark. Battered by the Covid-19, the tea industry is ailing. Any hike in power tariff now will deal a blow to the industry."

The Group of Retired Engineers said, "The delay in constructions of power plants has led to cost overruns. Bandhs and the law-and-order situation, natural conditions etc., are behind the delay in power project completion, apart from the laidback attitude of the power companies. The delay in projects will lead to a 165-395 per cent hike in per-unit production cost. Assam procures only 400-MW power. Why should they keep a separate generation company for such a meagre production? Why does not the government merge the APGCL with the APDCL? That will reduce the establishment cost to an extent."

The Consumers Advocacy Cell said, "Quality and affordable power is a must. The power companies need to address their shortfalls."

Indus Tower Ltd said, "The department should group the towers with small-scale industries and fix their tariffs accordingly."

Entrepreneur Abhijit Baruah said, "During the Covid pandemic seven oxygen plants came up in Assam. The department should fix a special tariff rate for such plants."

Strangely, the parties and organizations that raise a hue and cry in every power tariff hike were conspicuous by their absence in the hearing. It was the right time to raise their views against the proposed power tariff hike.

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