Poll effect: avoid politics on electricity, say private distribution utilities

The three private power distribution utilities in Delhi feel that “logic and not politics” should govern the decisions of the Aam Aadmi Party (AAP) when keeping up the election promise of providing cheaper electricity.

Electricity availability and tariffs have been a key part of the campaignfor both AAP and the BJP. What worries the players is unnecessary politicising of the whole issue, which might lead to delay in implementation of the Central Government’s reforms programme of the sector.

Between April-December 2014, Delhi’s power requirement was 23,831.3 million units while the supply was only 23,800.2 million units or a deficit of 31.1 million units.

Delhi’s three private discoms — two owned by the Anil Ambani Group and one by the Tatas — had come under glare during Arvind Kejriwal-led AAP’s earlier short stint, resulting in a performance scrutiny by the Comptroller & Auditor General.

Kejriwal had pushed the Government auditor to undertake a comprehensive performance audit of these utilities. His party believed that fair audit will help in giving a clear picture of the financial status of the utilities and bring down the power tariff in Delhi by almost 50 per cent.

No audit worry The players are not unduly worried about the audit, industry sources said, adding that “For the last one year the audits have been taking place. Almost 80 per cent of the audit has been completed. In fact, the players have challenged the legality of such an audit.”

Sources associated with the entities said that with the kind of mandate that AAP has received, it will look at a stable stint, and avoid any kind of crisis situation.

On one issue both the BJP and AAP were on the same page — correcting the power supply situation and acknowledging the fuel supply constraints. The BJP was for more competition in power distribution sector with consumers having an option of choosing their power service provider as a solution to cut down power tariffs. Though AAP had endorsed the move, it felt that oversimplified formulation of drawing a parallel between power and telecom was misleading and erroneous. 

“While competition in electricity distribution will help in containing the tariffs, it cannot be panacea for all the ills plaguing this sector as there are very serious issues at various levels,” AAP had said.

AAP has been maintaining that if it comes to power it will ensure that the citizens of Delhi do not bear the burden of soaring power tariffs. “Initially we will provide subsidy that would go not to the power discoms but to Delhi Transco, a state-owned transmission company which has unpaid bills of ₹3,500 crore to be paid by the discoms.”

This money will help Delhi Transco upgrade and augment its transmission capacity, which is in a bad state at present. The lack of funds at Transco’s disposal is one of the main reasons for frequent power outages in the State. After the audit results are tabled in the Assembly, power tariffs will be restructured.

Asked about the tampered metering issue, industry sources said, “In their earlier stint also AAP had raised the issue and introduced a helpline. But, complaints received were less than 55 in the 49 days of their governance. The party had done away with the helpline.”

While corrective measures are needed it has to be done taking all stakeholders along, those in the industry say.

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