Govt cites rising demand, higher operating costs to justify hike
Goan households will face steeper electricity bills starting with the billing for consumption of the current month as the Joint Electricity Regulatory Commission (JERC) had cleared a 5.95% hike in power tariffs, the second consecutive increase in two years.
The government which notified the hike last month insists that it is unavoidable, citing rising demand and mounting operational costs.
The hike is effective from June this year but officials did not clarify whether the difference of past bills calculated on the basis of pre-hike tariffs will also be added in the new bills.
Opposition parties and politicians meanwhile have condemned the tariff hike, arguing that the move lacks sanctity in the backdrop of financial and operational indiscipline in the department.
Leader of Opposition Yuri Alemao has termed the tariff hike unjustified while pointing to the State’s failure to recover power arrears of over Rs 540 crore as of 2024–25, much of it locked in litigation.
Officials on the other hand say the hike is necessary to bridge revenue gaps and sustain infrastructure upgrades.
“Demand is rising, and so are costs. Without tariff adjustments, service reliability will suffer,” a senior Electricity Department official said.
The department had also projected in its business plan presented to the JERC a cumulative increase of more than 16% spread across the next three years.
Yet the arrears issue looms large with the electricity department struggling to collect dues from bulk consumers, including industrial units and government departments, with many cases stalled in cumbersome court proceedings.
Meanwhile, Opposition politicians and consumer groups argue that ordinary households are being penalised for the government’s inefficiency.
“Why should honest bill-payers carry the burden of mismanagement?” said Benaulim MLA, Venzy Viegas.
Business associations meanwhile have warned of cascading effects on production costs, and the public hearings conducted by the JERC before granting approval to the hike had seen heated exchanges, with many demanding that the government prioritise arrears recovery before imposing fresh hikes.
Electricity department officials counter that arrears recovery is a complex process, often delayed by legal disputes and court proceedings, and cannot substitute for tariff revisions. The officials said the hike is essential to ensure uninterrupted supply and fund system upgrades.
Unless the government succeeds in recovering arrears and resolving litigations, the debate over fairness and accountability is set to intensify, leaving households and businesses bracing for heavier bills in the years ahead until 2029.
