If the Finance Minister, Mr Pranab Mukherjee, and the Deputy Chairman of the Planning Commission, Mr Montek Singh Ahluwalia, have their way, your electricity bill may soon go up.
In his remarks at the National Development Council (NDC) meeting here on Saturday, Mr Mukherjee asked the States to review and revise tariffs regularly to ensure the financial health of State electricity boards. Urgent action was needed on both fronts to ensure that the cumulative losses of utilities do not ultimately devolve on State governments, he added.
The aggregate technical and commercial (AT&C) losses in the distribution of electricity, on an average, have exceeded 40 per cent of the revenue realised. Mr Ahluwalia estimated that the total losses of the distribution system, if properly accounted, would probably be Rs 70,000 crore.
He said that the 12th Plan version of the Accelerated Power Development Reform Programme should be tailored to provide resources to States that take credible steps in this direction.