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JULY-SEPTEMBER, 2002VOL. 3
NO.3 Kerala Government has decided on a package of tariff hike and power sector reforms on 28-8-02. The package is announced under the guise of the so-called power crisis due to inadequate monsoon and consequent dependence on thermal power. The package has the following components. · 50 Ps thermal surcharge for each unit of electricity consumed, for all category of consumers. · Rationalization of tariff for Domestic consumers. · 150 small hydel projects will be entrusted with private sector for development. · A high power committee headed by Chief Secretary is constituted to suggest reform initiatives. Government has later indicated the path of reforms ; it intends to privatize the distribution and generation sectors. Through the tariff revision Govt. expects to mop up an additional 900 crores and thereby make the sector profitable and attractive to the private investors. The Government actions are aimed at fulfilling ADB conditionality for commercializing the sector before the release of the first tranche of ADB loan expected to be released during October 2002. But the rise in tariff has come as a rude shock to the consumers. ‘Rationalization’ of tariff for domestic consumers has steeply increased their electricity bills. The increase varies between 40% and 140% depending on consumption levels. Previously a domestic consumer, having a consumption of 200 units a month was billed in the following manner. For consumption up to 40 units @ Ps. 90 Rs.36 “ between 41 and 80 @ Ps. 140 Rs.56 “ “ 81 and 120 @ Ps. 165 Rs.66 “ “ 121 and 150 @ Ps. 200 Rs.60 “ “ 151 and 200 @ Ps. 265 Rs.133
Total Rs.351 Through tariff rationalization the consumer has to pay @ Ps. 265 for the whole 200 units. Along with this he has to shell out another Rs.100/- as thermal surcharge @ Ps. 50 for the 200 units consumed. The increase in his bi-monthly bill will be Rs.615/-. In the case of a consumer having a monthly consumption of 210 units the increase will be Rs.911. The following chart indicates the increase in bi-monthly bills. Though the Govt. calls it rationalization of tariff, the action is deplored as a thoroughly irrational one. Monthly consumption Present bill* New bill* Increase 50 110 165 55 100 275 473 198 120 348 568 220 130 392 715 323 150 480 825 345 160 538 1109 571 * Bi-monthly bill inclusive of ele. Duty but excluding meter rent. The increase in other category of consumers is also unbearable. Tariff for Agriculture is increased by 82% and that for orphanages, Cheshire homes, Old age homes etc. also by 82%. As for industry, the increase is between 14.5% and 20%. Commercial consumers has to bear with an increase between 8% and 20%. Peoples reaction to these rather harsh measures was almost spontaneous. Violent protests erupted from all over the state, on the very next day and the agitation is gaining momentum with each passing day. The opposition Left Democratic Front has declared to spearhead the agitation until the hike is completely rolled back. Interestingly certain forces within the ruling establishment, with the help of a section of media, is trying to divert the focus of the agitation towards the so called inefficiencies of the Board. They aim for furthering their demand for a total privatization of the electricity sector by utilizing the ire of the people against tariff hike. It is time for progressive forces to intervene and bring to light the bitter experiences of power sector privatization, in India and abroad. B.Pradeep, Secretary, KSEB Officers Association |
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