Discoms face criticism over tariff- revision

Indore: The power distribution companies’ move for a 10 to 12 per cent hike in the tariff has not been well- received by the industries. The ‘ shock’ to the industries has apparently caused a major upset. Prior to taking any further action on the tariff- revision proposal, members of the Madhya Pradesh Electricity Commission ( MPERC) have convened a special public hearing on March 8, wherein industries’ associations will come forward and table their grievances, objections and suggestions to the proposal.

Discoms face criticism over tariff- revision

Association of Industries Madhya Pradesh ( AIMP)

The Association of Industries, Madhya Pradesh ( AIMP) is gearing up to counter attack the proposal by the Discoms. The members have already made their reservations against the proposal. The Micro, Small and Medium Enterprises ( MSME) sector has vehemently opposed the tariff hike move. They stressed that the Discoms should cut down on the expenditures and utilize the surplus income in overcoming other expenses. It is unjustified to put the burden on consumers. The AIMP also raised an argument stating that line losses have been decreased and sufficient revision was done last year so why there is a need for tariff hike.

Another point which has been contested by the association members is that of surcharge levied on power consumed. In their proposal, the Discosm have deliberated for a 100 percent increase in peak hours surcharge which is levied on power consumed – industrial and domestic. At present, this surcharge is 15%. While putting its foot down on the proposal, the AIMP did not forget to mention about the government’s two- faced diplomacy.

On one hand, the government is taking bold steps for the development of industrial sector, and creating new avenues of advancement and opportunity, while in other hand the government is also inclined towards the tariffrevision proposal. The industrial fraternity is pushing to the government to reconsider its stance.

Whilst fighting against the Discoms, the AIMP is rooting to get its own set of demands approved by the MPPRC. Industries have asked for removal of ‘ minimum power consumption’ clause. They have also asked for the ‘ connected’ limit of small units to be extended. The association has included its point- ofview on issues such as energy balance, transmission distribution lines, voltage- wise cost supply, peak hours rebate, power factor incentive, and many others.

Pithampur Audhyogik Sangathan

Similarly, the Pithampur Audhyogik Sangathan has made its mind to appear for the public hearing and put forth its view on the matter. Their members have insisted that the power- tariff revision is illtimed because the Madhya Pradesh Power Management has proposed to procure 3504 million watts of power at an investment of Rs 1416 crore. During the year, the government will increase the power- supply in various areas across the State.

There are surefire predictions that the state will have electricity available in abundance, so much so that quantities of energy could be given to other states at a price, which will be profitable for the Discoms.

Pithampur Audhyogik Sangathan has also made a mention about the ongoing malpractices in the Discoms with regards to the funds collected from domestic consumption and industrial consumption.

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