 "Power")
The total power generation currently in this country is 2.75 lakh Mw. The per capita power demand in India is close to 1000 Kwh. The government claims there is ‘one nation, one grid’ connecting all power demand and supply centres. There is also at least one power distribution company in every city. With the auction of mines and Coal India increasing its production to record output, we have surplus coal in the country to fuel our power stations.
So theoretically, we all should get at least 15-18 hours of uninterrupted power supply.
Cut to reality. There are 4 million households with no electricity connection. North-eastern states still await reliable power supply. Hinterlands in states such as UP, Haryana, Bihar, Jharkhand, Odisha etc have power cuts running into days.
So, why are we finding it difficult to ensure 100 per cent penetration of electricity across the country? Because the utility which is supposed to provide electricity in our homes and establishments, does not have the money to buy more power and set up new transmission lines.
State power distribution companies (discoms) across the country are saddled with cumulative loss to the tune of Rs 2 lakh crore – making it practically impossible to purchase even a single surplus unit of power or initiate any technical improvements in the power system.
Why doesn’t it have money? Because we (consumers) didn’t pay for electricity!
Over the years the cost of producing power has gone up. Coal prices have shot up, cheap domestic gas supply went dry and newly introduced renewable sources are costly. But your bill in the past five years would reflect that minimally. The generator included the high operation cost in the final price of power. But our power distributor, tangled in the leash of political motives can hardly pass it on to the consumer.
To the recurrent promise of ‘free power’, ‘power availability’ was sacrificed. Except Gujarat and Punjab, no agricultural populace pays for power. For decades, there has been no billing of power being used by farmers in southern states, UP, Bihar, Haryana and other farmer dominated states.
The elected representatives promise free power. In cases where they don’t, ‘Bahubali netas’ (people in northern & eastern states would know well) made sure we get ‘free power’. Bihar will witness this soon with the upcoming elections.
Wish they knew – no produced good is free in this world. The way the costs are spiralling above for all goods & services, same is the case for power. The cost of procuring thermal power is close to Rs 4.5-5 per unit, at current inputs. The national average of 200 units consumption is Rs 2-3 per unit.
In Mumbai, there are privately owned power suppliers, and residents pay whatever tariff is charged –which is revised periodically as per the cost of purchasing power.
It pays to get 24X7 power supply!
A recent audit of all the power distribution companies across the country – a common thread ran through all the poor performing ones – no tariff hike.
The privately owned discoms in Delhi, unlike Mumbai face losses because for past three quarters there has been no major tariff hike. Also, because even an IIT graduate, ex-IRS CM Arvind Kejriwal promises free power.
Meanwhile, the centre, the RBI and the banks are losing sleep on the mounting debt of the discoms. The union power minister Piyush Goyal has categorically said the central government will not bailout bank loans given to state owned discoms.
If Gujarat can turn around its loss-making power sector by reforming the way power is regulated and distributed, other states can follow suit. It’s time the states wake up to the fact that power supply needs to be a business model not political agenda.
And the voters need to know – getting power at the best rate is our democratic right, expecting free power is abuse of democracy.
