#PowerDemocracy#PowerSector

India with its over 1.2 billion population and carrying the tag of the largest democracy has largely remained a country where there was a lot of disparity when it came to use of electricity. This is due to the fact that different category of users are charged differently. This has for very long created confusion as well as resentment amongst the consumers. The commercial and industrial consumers have been carrying the brunt of excessive tariff and frequent upward revision of tariffs on account of provision of cross subsidy for domestic and below poverty line(BPL) consumers.

Certainly it's the duty of the government to provide electricity to all which is a means of spreading growth and development. The increasing per capita consumption of electricity of any country is an indicator of growth and prosperity. The government and Power ministry along with its regulator (Central Electricity Regulatory Commission)until now had been following the populist measure of keeping differential tariff for BPL consumers. All this was going well with the government until now;but now with the advancement in the technology of non renewable sources of energy like Wind and Solar, the government must seriously think of changing age old ways. The state DISCOMs(Distribution companies) are already reeling under the heavy burden of debts of almost 1 trillion rupees. The popularized UDAY bonds of Government haven't come to their rescue too. The differential pricing of tariff has alienated the commercial and industrial consumers now. Some of the small industries have already shut shop because of fatter electricity bills. Some are on a constant lookout for alternate sources like solar and wind. If this continues for long then the troubles of State DISCOMs are going to deepen further with massive amounts of permanent disconnections requests.This will translate into net fall in consumer growth rate.

The only alternative solution to this at present seems to be the changes in the tariff system. A proper study of the tariff system followed in the states suggests that the cross subsidy and differential pricing has created the need to revise the tariff annually or semi annually. In states like Madhya Pradesh where non domestic and commercial tariffs are the highest, it is cheaper for a owner of a business of stone crusher to operate his machine on diesel than on electricity. The differential tariffs have also encouraged these business owners to go adopting dishonest means of power theft and unauthorised use of power. The officers and staff in the state discoms despite being vigilant are not able to catch these malpractices and this has led to the gross loss of revenue to the DISCOMs. A single tariff based on the amount of electricity consumed and the connected load in the premises could provide a solution to the DISCOMs. The regulatory commissions should mull over these facts and come about a change in the tariff policy to avoid this confusion.

India being a developing nation needs to think seriously on this at a time when the youth population is teeming and unemployment is at its peak. Electricity provides the necessary fuel for any industry so the tariffs should be decided sensibly to encourage industries.