Haryana: No Increase in Electricity Tariffs Post Elections | SupportBiz

News

Haryana: No Increase in Electricity Tariffs Post Elections

 
Tags: Haryana, Discoms
DISCOMS will look to boost their earnings by reducing Transmission & Distribution losses instead of burdening consumer with an increase in electricity tariffs

It is highly unlikely that electricity tariffs in the State of Haryana will increase even with the formation of the new government as its DISCOMS are geared up to drastically reduce the aggregate Transmission & Distribution (T&D) losses, offsetting their financial losses. The State discoms will achieve this by utilizing government allocated funds of Rs 3,000 crore, which is to be utilized in the remaining period of the current fiscal to overhaul and upgrade their existing transmission and distribution networks - including transformers and other such electric infrastructure.

Disclosing this while speaking on the occasion of a National Conference on Power Transmission and Distribution under the aegis of PHD Chamber of Commerce and Industry, Arun Kumar Verma, Managing Director, Dakshin Haryana Bijli Vitran Nigam, added that even though losses from rural Haryana are attaining a height of 70 per cent as per latest official estimates, the State discoms are determined to offset their rural electricity losses by bringing about modifications in their electric infrastructure.

Verma was of the view that Haryana government did not allow its discoms to hike domestic and industrial electricity tariff for nine consecutive years (beginning 2001 to 2009) for political and social reasons, but now in the changed situation under which upgradation and modification of State discoms is a missionary commitment. The discoms would do their best to replace the existing system with the new ones so that consumers are not burdened with the increased tariff structure.

Though, the discoms in the State has been suffering crores of rupees in losses on account of political interventions, which continues even now, the focus has shifted altogether to put in a place a system with the help of new technologies so that tariff increases are minimized and restrained to the best of the abilities of the discoms, pointed out Verma. He added that it is with this commitment that the discoms in the state would move forward to satisfy consumers and reform themselves both physically and financially, which is quite possible.

The State has also agreed to accept the new financial restructuring plans mooted by the Union Power Ministry in recent past in which it has agreed to reform its discoms. Consequently the banks have begun to extend them new financial packages as well consented to restructure their loans which in the case of Haryana stood at Rs.12,000 crore by March 2012.

Co-Chairman, Power Transmission & Distribution Committee, PHD Chamber Mr. R C Agarwala said that the focus of the government should be to divert to help discoms and the electricity boards to reduce their aggregate transmission and distribution losses which at a national level stand at 27 per cent and vary between 35 per cent to 45 per cent depending on States. On account of these losses, the discoms and electricity boards are moving towards bankruptcy since these losses have gone to an extent of Rs.180,000 crores per annum.