Yes, it is easy to cut electricity rate by 50%. This conclusion came in a discussion with the experts on the eve of Consumer Day i.e. 24th Dec at Institution of Engineers, Nagpur. Various experts were present in the discussion, including those consumer affair, electric generation, distribution, representing consumer side at Electricity Regulatory Board.
It's a political-technical nexus drafted intelligently to exploit consumers. The political leadership busy in eating out capital of electricity, realized that they will not be able to suck consumers blood for a long time. Because whenever they were increasing electricity rate they were cursed by the people. Which was also not good for their political career. Therefore in the name of bringing more transparency to the consumers, they drafted legislation for the constitution of Electricity Regulatory Commission. An independent body to look in to the affairs of consumers and electricity generators, distributors. It is shown that the govt. have to do nothing, it is in between consumer and supplier. In case of any grievance, one who feel problem can approach ERC. It is completely ignored that in India how consumer can fight a legal battle with a commercial institution. How an illiterate consumer will be able to quote various sections of the ERC law and scrutiny of the account containing thousands of pages, prepared by those expert in this field. In short illiterate consumer is entrusted with the responsibility of defending himself in the court of law, by challenging generation cost, distribution expenses, transit loss and various other technical, economical and legal aspects. One can make it out what kind of transparency is awarded to the consumers by en-thrusting ERC regulation. In a way sheep (consumer) is thrown before lion with a warning of defending himself. Not only ERC but all other regulatory bodies created in the name of safe guarding consumer interests are biggest source of consumer exploitation. Actually these institutions are created for adjusting the beurocrates after retirement and have nothing to do with the consumers interest.
In the discussion it came on the surface that though these electric companies have outstanding of several thousand crores on government and other big consumers. In case this revenue is made available to the electric company by clearing outstanding. Electric company will come out of red easily, without increasing rate of the electricity. But to hatch consumer is an easy option. Therefore instead of going for this tough option of making recovery of their money from the government and other prosperous companies in the shelter of politicians. ERC always permits tariff increase one, two three and even four time in a year. How one can go against their masters, it is tough. Consumer is easily available.
Generation is the other area, where plants are working at lower capacity. Using costly imported coal as a fuel to serve interests of certain blocks. Purchasing of the electricity at higher rate. Even if the power is available at cheaper rate rules are drafted so that they have to go for costlier options. In a way all monopolistic practices are in practice to sell electricity to the consumers at exorbitant rates.
Distribution is another area where electricity bills are drafted in such a way that one has to apply his all skills for understanding calculations made in the bill. Even then it is not easy for him to understand it. Consumers are again exploited in the name of transition loss. Though standard norms are there but suppliers need not to care for it as his interests are well protected by the ERC.
It is not possible to go for any reduction in electricity cost, unless these ERC's are scraped. Level field is given to all private operators for distributing electricity generated by them. One thing to remember consumer elects his representatives for his protection. It is duty of the elected representative to safeguard his interests from all odds. Not to ask him to protect his interests by going through complicated legal procedures.
One thing emerged in the discussion clearly that it is easy to bring down cost of the electricity, if interruption of ERC's is eliminated, electricity companies are forced to perform, the payment from the government and political patronized companies are regularized.
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