At the public hearings in Panaji and Margao on the proposed electricity tariff hike, the chief electrical engineer stoutly defended the move and went on to explain the need to improve the industry because the overall economy is linked to it. While explaining that the government has not touched the fixed costs, the CEE stated that the department has decided to increase the tariff for low-tension consumers, including domestic users since the load is increasing in that category. He cited massive investment in power infrastructure that is needed to keep pace with the growing needs of the State.
The proposed plan is to have a structured hike across various consumers ranging from 13 paise to 70 paise per unit. Interestingly, the department has proposed a 6 per cent hike for domestic consumers in the range of 0-100 and 100-200 units.
Hikes in power tariffs have been a routine affair, and every time they are announced, the common citizen becomes a direct target. There is no denying that the State needs to better its infrastructure and keep the industry alive because it contributes to the economy, but there also has to be accountability.
The CEE talks about the need to upgrade infrastructure, but that’s the talk that has been going on for decades just like the promise of uninterrupted power. Frequent electricity cuts continue to hit common citizens and businesses, especially during the summer and monsoon seasons and there has been no respite on this count for decades. Power transmission has been the biggest headache for Goa over the ears, and the priority or urgency should have been in this area.
Secondly, power thefts have been a constant with the department failing to clamp down on the culprits and plug revenue leakages despite the upgrades and billing via smart meters. Thirdly, there is a whopping Rs 168 crore outstanding electricity dues that the department has failed to collect, let alone the One Time Settlement schemes that have been periodically announced giving an escape route to heavy defaulters.
While the CEE explained the break up of the tariff and its implications on users in various categories, he has not thrown light on the many other factors that are weighing down the department and causing huge losses to the treasury. The CEE argues that the arrears have no link to the tariff proposal, but ignores the fact that it is still a major revenue loss. The OTS defence also appears vague because the point here is about giving a long rope to a few while the defaulting common citizen faces immediate disconnection.
Goa has faced turbulence in the past when presented with steep hikes. In 2018, when there was an 11 per cent hike announced, Health Minister Vishwajit Rane had expressed displeasure and requested the government to withdraw it. Last January, the government proposed a 6 per cent hike effective April, the second successive revision in two years. A hike announced on the eve of the 2022 Assembly elections was withdrawn after the government decided to make a budgetary provision to cover the shortfall.
Power tariff hikes pinch the economically lower class of citizens and come at a time when inflation is at its peak. The department must factor in all aspects, conduct an audit and place it before the people and list out the deliverables, going forward. There has to be transparency, and hikes have to be backed by some takeaways for the people.
