— Anubhav Dutta After abnormal property tax hike and the proposed commercialisation of water services in the midst of water crisis faced by the citizens, now it is the turn for electricity tariff hike. A combination of such hike of taxes and tariff for essential services would create an unbearable burden on the citizens already hard hit by price hike of food articles and other essentials. An average middle class family could ill afford to bear such an economic burden without pruning his monthly budget on food and other essentials, let alone hordes of others living from hand to mouth. These are some basic problems besetting the city dwellers which later on may be faced by all the citizens of the State. Yet it seems that the people by and large are unperturbed by such basic problems, else there would have been a concerted people’s protest against these measures enforced by the government. Presently the people seem to be engrossed in political discussion on the ensuing parliamentary election as well as on the political bickering against each other resorted to by the political parties in the fray, notwithstanding the fact that the level of political talks and arguments have stooped to the rock bottom level in Assam. Such cacophony created by the political parties seems to overshadow the basic issues of the people much to the relief of the political parties who failed to resolve it when in power.
On the eve of announcement of election schedule, the Congress government of the State having allegiance to the Constitution has announced its various policies and inaugurated a number of welfare schemes and projects for the benefit of the people of the State. But it is surprising to observe that the government has failed to declare its policy on some basic issues such as land, housing for the homeless, water resource management, flood control and electricity. These are pertinent issues concerning the majority of the electorate of the State. Yet our government having the constitutional obligation of a welfare State have hardly any transparent policy on such essential matters. A man needs shelter for rest after a hard day’s work. He needs water for survival. He needs electricity to light up his house after sunset. Yet the greatest democracy even after crossing midlife threshold of its emergence has millions of people deprived of such essential items.
The successor companies carved out of the erstwhile ASEB have submitted yet another petition for annual revenue requirement to AERC which envisages about 31 percent average hike of electricity tariff. A glimpse into the accounts of ASEB would reveal that the DISCOMs have projected a sale of 3386MU of energy.
Presently the grid company has a transmission loss of 5.81per cent against 5.82 per cent for the year 2008-09. Therefore for 2009-10,5500MU of energy is to be procured to make 5180 MU of energy available at the periphery of the DISCOMs. Similarly for 2008-09 Grid Corporation would need 4516 MU to make 4253 MU available for the DISCOMs. However based on the loss figures of 24 per cent, 22 per cent and 28 per cent of the UAEDCL, LAEDCL and CAEDCL respectively for 2009-10 and 26 per cent, 24 per cent and 30 per cent for receding years the aggregate requirement at the interface point with the DISCOMs for 2009-10 is 4469MU and 4087 MU for the year 2008-2009. Apparently there is some mismatch with the figures given. It reveals that despite the tall talk regarding energy auditing done by ASEB nothing has materialised till now. The contradictory figures seem to have been furnished on mere guestimation.
If the gross energy requirement of the transmission company is assumed as correct than out of the annual requirement of 5500 MU of energy, ASEB supplies 1700 MU from its own generation and the balance 3800 MU is procured from CPSUs. This quantum of power flows to ASEB through the power grid network, price of such electricity is commercially evaluated and ASEB has to pay down the nose to the CPSUs and Powergrid to procure such energy for ultimate supply to the consumers of electricity in Assam. Therefore ASEB has limited scope to reduce the energy cost by way of optimisation of T&D losses and effective grid management in the existing system. Apparently ASEB’s T&D losses have declined in the mean time after infusion of fresh investment to the tune of Rs 2000 crore. Yet more investments are required if it is to be reduced further. Secondly out of 3386 MU of sale, 1843.5 MU of energy is consumed by domestic consumers. The irrigation requirement is merely 25 MU. Consequently against a peak demand of 900 MW, the off peak demand of ASEB is merely 450MW. The commercial cost of energy during peak demand period is quite high. Therefore any reduction of cost of energy supplied without enhancing ASEBs own generation has become an absurd proposition with the existing consumer mix. A comprehensive and effective plan needs to be taken embracing all these points to redress the weakness of ASEB as manifested by the submitted accounts and data.
ASEB happened to be the victim of erroneous policy foisted on it by the State government. The cost of providing electricity to the consumers becomes quite high if commercial pricing policy is adopted. For whatsoever be the reason the T&D loss of ASEB was quite high. Earlier electricity fell in the category of essential service and government used to fix the tariff hike, so that it was affordable for the people. There was invariably a deficit in ASEB’s annual budget because it had to supply electricity at a price lesser than its actual cost. Such annual deficit was made up by the government by providing finance as loan with a normal rate of interest. In the name of debt servicing the interest on such loan on account of reduction in tariff was regularly taken by the state government. Before the enforcement of Electricity 2003 all such loan burden was waived and ASEB was asked to start a new chapter without any government support. Accordingly ASEB adopted commercial price fixation of energy akin to the ones practiced by the CPSUs from long ago. There is nothing wrong in it.
Each year ASEB submits its audited accounts to the AERC seeking tariff hike. Yet if all the expenditures as claimed by ASEB are to be approved the cost of electricity becomes a bit high for the consumers to afford. The AERC invariably cuts some of these expenditures and accord approval for a revised ARR in order to arrest the tariff hike. An amount of Rs 336.87 crore has been overspent than the AERC approved amount in the bygone days. This has been claimed by ASEB in its pending ARR before the AERC. Over and above this, prior to the enforcement of Electricity Act 2003, it was the bounden duty for the State government to take on the liabilities on account of employees pension, PF and terminal benefits, for which unlike the State government ASEB hardly had any transparent account. Presently the annual requirement on the above cited accounts has been assessed and proposed to be realised with the help of tariff hike. Consequently the proposed tariff has gone up further because of such reasons. Undoubtedly when commercialisation has been allowed for other CPSU in generation and transmission of power, there is little logic to deprive the State sector of its legitimate right in doing distribution business. But electricity tariff would rise abnormally if this is allowed.
In the wake of such complicated situation faced by ASEB, the biggest PSU of the State, it is felt that the State government must come forward and resolve the problem related to tariff hike. Presently the AERC seems to do political management on behalf of the Government and electricity tariff has been kept in an affordable limit. This amounts to recreation of history of the past -without any subvention at the cost financial health of ASEB. Therefore a policy declaring electricity service as essential service has become the need of the hour. By keeping a parity with the contitutional duty of a welfare State , the deficit faced by ASEB should be compensated by paying pure subsidy to ASEB so that its financial health remains intact. Even if Electricity Act 2003 opposes such a concept the Delhi State Government was forced to pay such subsidy on tariff to the private operator in order to soothe public discontent against steep tariff hike in the recent times. Therefore it is felt that a policy on electricity should be a priority for the government along with a policy on land, housing and water policy not only for the city but for the entire State also. ASSAM TRIBUNE
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