Port Blair, Jan 28: Mr. Vishal Jolly, National Executive Member, Bharatiya Janata Party (BJP) and Former State President BJP-ANI, has submitted a petition to The Secretary Joint Electricity Regulatory Commission for the State of Goa and UTs (“JERC”), Haryana, expressing grave concerns and strong objections regarding the proposed tariff hike outlined in Petition No. 119/2024 before the Joint Electricity Regulatory Commission for the State of Goa and Union Territories.
The communication aims to apprise the Hon'ble Commission of critical considerations and potential adverse implications associated with the suggested tariff modifications.
The proposed increase in electricity tariff is of considerable extent, particularly when compared against the prevailing tariff structures in other Union Territories. The proposed changes impose an inequitable burden on domestic consumers, commercial enterprises, hotels, and industries, as outlined below:
Domestic users (201-500 units): Rs. 8.50/Kwh to Rs. 12.80/Kwh
Domestic users (above 501 units): Rs. 10.25/Kwh to Rs. 15.40/Kwh
Industries: Rs. 12.25/Kwh to Rs. 18.40/Kwh
Commercial units: Rs. 16.50/Kwh to Rs. 24.80/Kwh
Hotels, resorts, and restaurants: Rs. 15.50/Kwh to Rs. 23.30/Kwh
These increases pose serious challenges to the financial viability of various sectors. The Andaman and Nicobar Islands face unique geographical and demographic challenges due to their scattered nature and the lack of a centralized power station or grid. These circumstances naturally increase the expenses associated with power generation, emphasizing the necessity for a detailed evaluation of the proposed tariff.
The tourism sector, a pivotal contributor to the islands' economy, has been severely impacted by the COVID-19 pandemic. While the sector is on the path to recovery, the proposed tariff hike threatens to impose an additional burden on the already struggling hotel industry, potentially resulting in more closures and job losses.
Many businesses, including industries, hotels, and restaurants, are facing closure or financial strain. The proposed tariff increase worsens this situation, negatively impacting businesses and job opportunities. The Electricity Department's dependence on small private diesel generators has increased the cost of power purchase, a significant factor in the rising costs passed on to consumers. It is crucial for the to explore and invest in innovative green energy alternatives, learning from similar island nations.
Given the facts and circumstances outlined above, we kindly request the admission of our objections to be considered during the scheduled hearing on 24/25th January 2024. We also urge you not to endorse the proposed new power consumption rates put forth by the Electricity Department, A&N Administration, in the broader public interest.
In its past Tariff Orders dating back to 2012, the Hon'ble Commission has clearly stated that there exists a significant gap between the Average Cost of Generation and Average Cost of Supply in the UT of A&N Islands. This gap cannot be directly transferred to consumers. The Hon'ble Commission has diligently worked towards narrowing this gap, taking into account the needs of the power department, and concurrently ensuring that consumers are not subjected to sudden and excessive burdens.
We sincerely request the Hon'ble Commission to reassess the proposed tariff hike, considering the unique challenges of the Andaman and Nicobar Islands, added Jolly.