(a) whether the Government are aware of the fact that the farmers
community in the country is protesting against power tariff hike by the State
Governments; and
(b) if so, the details thereof and the steps taken by the Union Government
in the interest of the farmers community in the matter?
THE MINISTER OF POWER ( SHRI SURESH P. PRABHU )
(a) & (b) : A Statement is laid on the Table of the House.
STATEMENT REFERRED TO IN REPLY TO PARTS (a) & (b) OF
STARRED QUESTION NO. 169 TO BE ANSWERED IN THE LOK
SABHA ON 08.03.2001 REGARDING PROTEST AGAINST HIGH POWER
TARIFF.
(a) & (b) : Some categories of consumers including agricultural consumers
have been protesting against the tariff increases decided by State Electricity
Boards (SEBs)/State Electricity Regulatory Commissions (SERCs) in some States.
The National Development Council (NDC) appointed a Committee
on Power chaired by Chief Minister of Maharashtra. The report submitted in
September, 1994 recommended inter alia, that,
- The State Government should adopt minimum All India agricultural tariff
as notified by Ministry of Power/Central Electricity Authority and also
should agree to provide subsidy to the SEBs in a transparent manner to
compensate for the losses, if any.
- Subsidies to the agricultural consumers should be progressively
phased out.
Chief Ministers` Conference held in 1996 adopted a Common Minimum
National Action Plan for Power (CMNPP) which envisages, inter alia that :
No sector shall pay less than 50% of the average cost of supply (cost of
generation plus transmission and distribution) and that tariffs for
agricultural sector will not be less than 50 paise KWH to be brought to 50%
of the average cost in not more than three years.
The Government of India have enacted the Electricity
Regulatory Commissions Act, 1998 with a view to rationalize tariff and
providing for transparent policies regarding subsidies. The Regulatory
Commissions are expected to fix tariff so as to progressively reflect the cost
of supply, encourage efficiency, economy and competition. The Regulatory
Commissions are also required to ensure that interests of consumers are
safeguarded and at the same time consumers pay for the use of electricity in
a reasonable manner based on the average cost of supply.
The Conference of Chief Ministers/Power Ministers held on
26.2.2000 recognised that the cross subsidies cannot be sustained if the
industrial tariff makes industry non-competitive.
The Chief Ministers/Power Ministers Conference held on 3.3.2001
resolved inter-alia that,
- the quality of power supplied especially in rural areas needs to be
improved through the Accelerated Power Development Programme
and other programmes quickly.
- SERCs may be made functional in next six months and tariff filings
made. Tariff orders issued by Central Electricity Regulatory
Commission and SERCs need to be implemented fully unless stayed
or set aside by court orders. It is necessary to move away from the
regime of providing free power.
- The past decisions of Chief Ministers of minimum agricultural tariff
of 50 paise may be implemented immediately.