How can hike in power bills soon after LS elections be justified?

The recent hike in power bills in Goa has sparked a heated debate among the public, with many questioning the justification for the increase.
Chief Minister Pramod Sawant defended the hike, emphasizing that it is marginal and that Goans pay significantly less compared to other states such as Maharashtra and Karnataka. He also highlighted that low-tension (LT) consumers in Goa are subsidized and that the increase in power tariffs is essential to obtain central funds amounting to Rs 2500 crore in the near future.
Sawant further explained that the state government’s effort to enhance power infrastructure over the last 5 years has required substantial investment, totalling around Rs 2000 crore, with an additional Rs 3000 crore needed for further infrastructure development. He emphasized that the power tariff is determined by the Joint Electricity Regulatory Commission (JERC) and not solely by the state government. Sawant underscored the necessity to increase power tariffs to secure central subsidies, indicating that failure to do so would result in the state having to provide its own subsidies.
In response to concerns about the impact of the tariff hike, the government assured that it would be moderate, ranging between 60 to 90 paisa per unit, with only commercial establishments expected to bear the brunt of the increase.
However, these explanations have not quelled the concerns raised by various sectors, including industrial, hospitality, agriculture, and allied activities. The Goa Chamber of Commerce and Industry (GCCI) has expressed apprehension about the challenges faced by local industries in competing with other states due to lower industrial tariffs elsewhere.
During the public hearing conducted by JERC before the tariff increase, GCCI proposed alternative measures to generate additional revenue without burdening consumers. These measures included suggestions to minimize power transmission losses, revert to a KWH-based billing system, and focus on areas with high distribution losses and peak load restrictions to benefit both consumers and the electricity department. Additionally, GCCI emphasized the urgent need to improve the quality and reliability of power supply, pointing out that current standards are lower compared to major cities in India.
The concerns raised highlight the pressing need to address the impact of the recent hike in power tariffs on various sectors in Goa.
It is evident that while the government’s rationale for the tariff hike is rooted in the need for infrastructure development and obtaining central subsidies, the concerns of local industries and the public cannot be overlooked.
Also, the impact on the common man cannot be ignored saying it will not feel the pinch. This sounds ridiculous simply because the hike has come soon after the Lok Sabha polls. Why was the government waiting for polls to be over for the hike?
There have been several charges already levied in the power bills like FPPCA etc that teh bill itself gives Goans a shock every month.
Agreed, the hiked bills will have no impact on politicians as they do not pay from their pockets it is the exchequers who pay their bills.
Balancing the imperative for increased revenue with the welfare of consumers and industries is crucial, and exploring alternative measures for revenue generation, as proposed by organizations like GCCI, could present a pathway toward achieving this balance.
In conclusion, the hike in power bills in Goa has sparked valid concerns from various sectors, and it is crucial for the government to address these apprehensions.
While the need for infrastructure development and securing central funds is important, it is equally essential to consider the impact on consumers and industries. Finding a balanced approach that addresses the concerns raised by various stakeholders is paramount in ensuring fair and justified power tariffs in the state.