Wednesday October 16, 2019
Home India Delhi Has Hig...

Delhi Has Higher Power Tariffs Than Goa, Arunachal Pradesh, J&K

The Delhi government recently announced that it would not charge any fee on power bills of up to 200 units, following which CM Arvind Kejriwal said that Delhi has the cheapest power tariffs

0
//
India, J&K, Power, Sector, Development
The government proposes to unbundle the department to break it into four profit-oriented companies. Pixabay

The Delhi government recently announced that it would not charge any fee on power bills of up to 200 units, following which Chief Minister Arvind Kejriwal said that Delhi has the cheapest power tariffs in the country.

Although the government is subsidising power bills in the state, a look at tariff rates across the country, however, shows that some other states have lower tariff rates than the national capital.

Data show that power tariffs in Goa, Arunachal Pradesh and the Union Territories of Jammu and Kashmir and Ladakh are lower than Delhi for up to 400 units of consumption, the range generally consumed by most households.

In the national capital, power tariffs as set by the Delhi Electricity Regulatory Commission (DERC) are: Rs 3 per unit up to consumption of 200 units, and Rs 4.5 per unit for the range of 201-400 units.

This rate has been fixed by the DERC and has remained stagnant for the past three years. But with the subsidy announced this year, the tariff for FY20 has become nil for up to 200 units of consumption.

In Goa, 1-100 units cost at the rate of Rs 1.4 per unit and Rs 2.1 is charged per unit in the range of 101-200 units with an average rate of Rs 1.75 per unit up to 200 units.

In Arunachal Pradesh, people under the ‘below poverty line’ category have to pay Rs 2.65 per unit and in general, tariff is charged at Rs 4 per unit. Further, in the Union Territories of Jammu and Kashmir and Ladakh, power tariff for the range of 1-100 units is Rs 1.54 per unit and Rs 2 per unit for the range of 101-200 units.

The Jammu Kashmir Electricity Regulatory Commission charges Rs 3 per unit for consumption of 201-400 units.

In July this year, Delhi Chief Minister Arvind Kejriwal announced free power for consumers using up to 200 units of electricity per month. He also announced that power consumption between 200 and 400 units would get 50 per cent rebate for the benefit of lower to medium income consumers.

This discount came on the behest of subsidies given by the Delhi government.

Further, the average cost at which distribution companies buy power is also higher in Delhi compared to several other states.

The average cost of power procurement in Delhi is Rs 3.90 per unit. This is even higher than the national average of Rs 3.60 per unit. Discoms in around 21 states and Union Territories buy power at an average price lesser than that in the national capital.

Delhi, India, Power, Tariffs
Delhi Chief Minister Arvind Kejriwal announced free power for consumers using up to 200 units of electricity per month. Wikimedia Commons

This shows that although power is significantly subsidised in Delhi, the discoms in the national capital buy power at higher rates. High cost of power does not provide a conducive situation for subsidies and the exchequer in Delhi would have to bear the financial burden over the recently announced rates.

In the financial year 2019-20, the Delhi government has allocated Rs 1,720 crore (out of Rs 1,790 crore under energy sector) for providing subsidies to consumers through power distribution companies (DISCOMs).

A look at the tariff approved by the Delhi Electricity Regulatory Commission for FY20 shows that electricity charges for the first 200-unit consumption remains static at Rs 3 per unit, for 200-400 units it is same as Rs 4.5 per unit, for 400-800 units its is Rs 6.5 per unit, and the only change this year for domestic consumer is that electricity consumption beyond 1,200 units has been raised from Rs 7.75 per unit to Rs 8 per unit.

With free power, Delhi has notably become the state with cheapest electricity tariff in that category as there is no further scope for cuts. But in this category too, Delhi is not alone as states like Chhattisgarh, Punjab, Bihar and Haryana have provided subsidy from the state budget to keep electricity tariff low despite state regulatory commissions approving higher tariff as part of the efforts to bring the charges closer to the cost and help discoms get over their chronic financial problems.

ALSO READ: Swachh Bharat Mission of Modi Government is an “Example-Setting Programme for World”

Industry experts said that electricity tariffs have to be revised upwards in most states given the rise in coal prices and the general inflation.

“It is most unfortunate that state governments are using low electricity charges as a plan to woo voters. If the charges were low due to the system and operational improvement among discoms, no one would have complained. But the fact remains that discoms in Delhi continue to sit on high regulatory assets while the government decides to subsidise electricity from budget,” said a power sector expert, asking not to be named.

Last year, the Arvind Kejriwal-led government had provisioned Rs 1,815 crore for the energy sector. The move to offer free power has shaken up the power sector. The announcement shatterd the hopes of a shift to market-driven policies easing the pressure on power distribution utilities. Although it provides relief to the common man, such moves may further impact the country’s beleaguered power sector and the subdued overall economy. (IANS)

Next Story

India’s Ties with Bangladesh at their Peak

In a caustic comment it said that while details of the lavish meals prepared for the Bangladeshi leader were enthusiastically reported

0
India, Bangladesh, Prime Minister
A Bangaldeshi media report claimed that there was little information available in the public domain about the agreements. Pixabay

Bangladesh Prime Minister Sheikh Hasina returned to Dhaka from a successful four-day visit to India last week having concluded seven agreements. But the agreements have caused unease among many in Bangladesh. Critics have panned the agreements as mainly advantageous to India and of little benefit to Bangladesh. Other commentators have called on the government to publish full details of the agreements.

India and Bangladesh signed seven agreements and MOUs on October 5, 2019 and a Standard Operating Procedure (SOP) agreement for transportation of goods. The agreements include a pact for supply of LNG as well as water from Feni River to India, and for transportation of Indian goods through Chittagong and Mongla ports in Bangladesh to Tripura.

A Bangaldeshi media report claimed that there was little information available in the public domain about the agreements. In a caustic comment it said that while details of the lavish meals prepared for the Bangladeshi leader were enthusiastically reported on by the Bangladeshi media, there was no information on the nature of the agreements.

The agreements to provide connectivity were described as regional connectivity, but one critic termed them bilateral connectivity as they served Indian interests and had scant benefit for Bangladesh. “India certainly stands to benefit, but Bangladesh is yet to make a tangible assessment of its gains,” it said.

India, Bangladesh, Prime Minister
India and Bangladesh signed seven agreements and MOUs on October 5, 2019 and a Standard Operating Procedure (SOP) agreement for transportation of goods. Pixabay

India’s smaller South Asian neighbours have often perceived New Delhi as exploitative for using its clout to negotiate one-sided agreements advantageous to India while ignoring its neighbours’ interests.

Sheikh Hasina defended her government’s decision to supply 1.82 cusecs of water from the Feni river to India for drinking water purposes as a very small amount of water.

“If someone asks for drinking water, how can we deny it?” she said.

Regarding the agreement to supply of LPG, she added that it was not CNG that Bangladesh would be selling to India, but LPG, which was a byproduct in the refining of oil. In 2001, the possibility of selling natural gas to India had become a major controversy in Bangladesh with Sheikh Hasina’s Awami League party objecting to the sale of a scarce resource.

Also Read- Severe Sleep Apnea Linked to Vision Loss in Diabetic Patients

The agreement to supply Feni river water has rankled as there has been no movement on finding a resolution on the sharing of Teesta River waters. The criticism acquired a serious turn with the murder of a second year student of the Bangladesh University of Engineering and Technology by fellow students for criticizing Sheikh Hasina and the agreements in a Facebook post. The students were allegedly members of the Chhatra League, the youth wing of the ruling Awami League party.

India’s ties with Bangladesh are at their peak, among the best of India’s relations with its South Asian neighbours. But the criticism of the agreements with India is evoking memories old irritations and suspicions.

There are several pending issues between India and Bangladesh such as the huge trade deficit and sharing of Teesta river waters. Dhaka has been remarkably patient over New Delhi’s problems in agreeing to a resolution on sharing of the river waters.

Sheikh Hasina’s government has accepted Prime Minister Narendra Modi’s assurance that he would work towards a satisfaction resolution to the ticklish issue. The main impediment on the Teesta issue is the stance of the Mamata Bannerjee-led West Bengal government.

India, Bangladesh, Prime Minister
The agreements include a pact for supply of LNG as well as water from Feni River to India, and for transportation of Indian goods through Chittagong and Mongla ports. Pixabay

The National Register of Citizens exercise in Assam with identification of illegal migrants has raised grave concern in Bangladesh. Sheikh Hasina has accepted for now the Indian stance that it is an internal matter of India. But comments by Indian leaders about pushing out the foreigners have their ripples in Bangladesh which facile assurances do not alleviate.

Building trust between the two neighbours has been a slow and steady process that involved wiping away the mistrust and suspicion that that had plagued relations for long. The resolution of the sharing of the Ganga waters removed a major irritant in the ties.

Sometime later, Bangladesh Prime Minister Sheikh Hasina’s assurance that Bangladesh territory would not be used for anti-India activities and its effective implementation became the first major step in building the trust. The resolution of the Land Boundary Agreement for demarcating the border was the second positive factor in generating trust and confidence. It created the environment for closer cooperation between the two countries. Both Dhaka and New Delhi have used the friendly environment to construct a cooperative relationship.

Also Read- Microsoft Launches Project xCloud Game Streaming Service Preview for Xbox Users

New Delhi can easily lose that goodwill if the sentiment that India is uncaring and lackadaisical about issues of interest to Bangladesh begins to gain ground in Dhaka. New Delhi needs to be more sensitive to Dhaka’s concerns. It should speed up tackling the long pending issues before they build up into a major grievance in Bangladesh, which could make it difficult to implement already concluded agreements. (IANS)