Power subsidies or tariff cuts are not permanent solutions

 Toeing the Aam Aadmi Party (AAP) line in Delhi, a few state governments have started announcing reduction in tariff through subsidies, keeping in mind the forthcoming Lok Sabha election. The power subsidies or tariff cuts are just election gimmick and not permanent solutions which we had been witnessing since ages.
Firstly, tariff structures need to be restructured in order to have a proper, fair billing. The wheeling charges, cost of expensive power, reliability charges, stand-by charges, FAC charges, state government tax on sale of electricity 0.15 to 0.20 paise unit, electricity duty @ 15-20 per cent need to be seriously engineered and develop a new frame of billing where the consumers are not overbilled.
Secondly, distribution loss needs to be minimised to the lowest level by using high tech products which have the lowest watts loss and also power distribution needs to be quickly worked upon . lt has been 50-60 years we had been using the old switching device and products wherein energy saving formulation or technique is not there.
Thirdly, our power generations, transmission and distribution networks need immediate action by all state government to use the latest tools, device, and high tech products to optimise the losses which in our country is about 15-25 per cent as T&D losses and open power theft. If these issues are handled judiciously the consumer will get the ultimate benefit and all the ailing power discom will get into profit mode. Hence use of high tech technology in power generation, transmission and distribution is required.
As mobile portability number has created a magic in telecom industry by having a healthy competition among the service provider, similar approach is needed in power discom industry.
MERC has started a strong initiative in Maharashtra of switch over to other power utility without any expenses. But the system is not channelised and the consumers have to bear many other charges in their bills like wheeling, reliability, and FAC even after switchover. These need to be corrected in order to have permanent cost saving solutions for our Consumers.
– Siraj Khan, Managing Director, Hitech Switchgear India