Why electricity price hike is not justified
ELECTRICITY CHARGES BY BILAL AHMAD MALIK
Utility’s Point of View: AT&C (Aggregate Technical & Commercial) losses in any utility is the most important factor that determines the revenue generated by any utility and ultimately affects the price of per unit of electricity, i.e. Tariff of Electricity. Though most of the utilities in India are working towards the reduction of AT&C losses, however, only few of them have been successful. Utilities are trying hard to reduce the losses by making new schemes, however the same are either not 100% completed or implemented properly. For example HVDS Scheme has been implemented in many areas of J&K, however, the other aspects relating to the revenue generation have been ignored. Not only technical efficiency, but billing efficiency has to be improved. AT&C losses in J&K are very high in comparison to the national average. If these AT&C losses are reduced, it will generate more revenue to the utility and ultimately help in reduction of the electricity tariff. However rather working towards reduction of AT&C losses resorting to electricity price hike is not justified.
Consumer’s Point of View: Indian consumers are the most exploited, in general, and consumers of J&K, in particular. They are on the mercy of the service providers. In regards to power supply, most of the areas in J&K are not getting proper power supply. Low voltage, low frequency, frequent interruptions and even absence of electrified areas are common problems that are now the inherent aspects of our lives. Quality power supply is something that we don’t even know. Every utility in India is bound to provide quality service, be it communication, power, water, drainage, banking, etc. Though I don’t want to comment on other departments, however as far as power scenario is concerned, I have rarely seen power supply, in J&K, that I can call quality power supply. Now since the utility is not providing us the reliable and quality power supply, hence the price hike for the service, that is not deserving enough, is totally unjustified.
How to reach a Consensus – Attaining Equilibrium:
Equilibrium, in regards to power supply, has to be attained for overall social well-being. This equilibrium shall be attained when service providers improve the quality of the power supply. Once the required quality and un-interrupted power supply is provided and the losses are reduced enough, so no further reduction is possible, then only utility can and has the right to go for the price hike and this price hike shall be “Justified” and “Acceptable”.
Author presently works as Project Manager in UAE. Mail him at firstname.lastname@example.org
Lastupdate on : Wed, 2 May 2012 21:30:00 Makkah time
Lastupdate on : Wed, 2 May 2012 18:30:00 GMT
Lastupdate on : Thu, 3 May 2012 00:00:00 IST
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