CERS opposes any move to increase electricity charges

Ahmedabad, Feb 15 (UNI) A city-based voluntary organisation in a submission filed before the Gujarat Electricity Regulatory Commission (GERC),has objected to any increase in electricity tariffs for consumers of state-owned power generating, transmitting and distribution companies in the state.

Consumer Education and Research Society (CERS), Ahmedabad, in a release here, demanded that the state-owned utilities must improve their performance and reduce wasteful expenses before they seek any revision in tariff.

CERS has urged the GERC to introduce multi-year tariffs as advocated under the Electricity Act 2003, and the National Electricity Policy.

The wasteful expenses on the present efforts for a revision in tariff every year add up to a large amount in terms of administrative work undertaken and fees paid to well-known advocates. Eventually, consumers bear the burden of all the expenditure, it added.

CERS has requested the GERC to direct these utilities to perform as per the standards laid down in the Regulations framed by the GERC. The various technical parameters, for example plant load factor, station heat rate, auxiliary consumption, specific oil consumption and coal transit losses should be compared with standard parameters before approving any revision in tariff.

The plant load factor of the state-owned utilities was only 67.3 per cent as compared to 82.90 per cent of the Centre-owned plants and 85.35 per cent of the privately-owned plants in the financial year 2005-2006, the CERS said.

Due to the low plant load factor, these utilities have to purchase a large amount of power from independent power producers at a high cost and incur huge losses, it added.

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