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Home » Power subsidies or tariff cuts are not permanent solutions

Power subsidies or tariff cuts are not permanent solutions

By February 25, 2014 12:22 pm IST

EPR (Electrical & Power Review) | EPR Magazine
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 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.

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