Maharashtra energy minister terms proposed Electricity (Amendment) Bill as ‘anti-poor and anti-farmer’

MUMBAI: Maharashtra energy minister Nitin Raut on Friday called the proposed Electricity (Amendment) Bill 2020 as ‘anti-poor and anti-farmer’.

In a letter sent to the Union energy ministry, Raut has pointed out that the proposed bill eliminated the cross-subsidy entirely. “The cross subsidy mechanism envisaged a support to consumer categories with low capacity such as those below povery line, low end residential users and agricultural consumers. The withdrawal of subsidy would impact adversely on a society as a whole,” he pointed out.

He further said that the MERC was setting tariffs so that the cross-subsidy was reduced to the extent possible without tariff shock to any consumer category as per the provisions of law. “However, owing to the historical legacy and background of the present tariff for various consumer categories, it was difficult for state electricity commission to eliminate the cross-subsidy entirely,” he added.

He said every state had different consumer mix and state specific needs of cross subsidy to particular category of consumers. For example, in Maharashtra there are highest agriculture pumps in the country and its electricity consumption is significant whereas same case is not applicable for few other states.

He said the proposed Amendment also provided for direct transfer of subsidy to consumers in advance and the consumers were to be charged without subsidy as per the Commission determined tariff.

Considering very low recovery from agriculture consumers and with the advance payment of DBT, there will be a further increase in arrears, additional burden of penalties on consumers and increase in financial woes of the distribution companies and the end result of such non-payment may be disconnection of consumer, he added.

Source: timesofindia.indiatimes