Crackdown on power tariff misuse runs into data wall

PANAJI  
Goa’s crackdown on villas and second homes allegedly misusing domestic electricity connections for lucrative commercial rentals has hit a major roadblock, with the Electricity Department admitting that lack of user data from online accommodation platforms and the Tourism Department is preventing it from identifying and acting against offenders.

The department told the Joint Electricity Regulatory Commission (JERC) that the absence of user information from platforms such as Airbnb has left authorities struggling to identify properties operating commercially while continuing to avail domestic electricity tariffs.

The issue surfaced during public hearings on the tariff petition, where consumers flagged that several villas, second homes and luxury short-term rentals earning substantial revenue continue to be billed under residential tariff categories despite being run as commercial establishments.

Responding to the concerns, the department informed the regulator that it has been making continuous efforts to identify and penalise consumers misusing domestic power connections for non-domestic activities.

“The Department has coordinated with the Department of Tourism to identify such consumers registered on related platforms. However, in the case of platforms like Airbnb, the details of users are not readily available on their websites and with the Department of Tourism, making individual identification challenging,” the department stated.

It added that while enforcement remains difficult, the department continues to remain vigilant and has invited citizens to share credible information to facilitate action under applicable regulations. The department further stated that it is working with the Tourism Department to identify such commercial activities and ensure such establishments are shifted to the Low Tension (LT) commercial category.

Consumers at the public hearing had argued that the tariff petition failed to account for significant revenue leakage arising from tariff misclassification.

“Despite the material financial impact of this issue, the petition neither discloses audit findings nor quantifies revenue losses or proposes corrective measures. This omission artificially inflates the Aggregate Revenue Requirement and weakens the financial justification of the petition,” consumers submitted before the regulator.

The department had earlier announced that it would launch a “comprehensive verification exercise” to identify misuse of domestic electricity connections after the revised tariff structure came into force in October last year.