• ‘Power demand not to go up in 2017-18’

    A society headed by a former chairman of the Madhya Pradesh Electricity Board P L Nene has said that there will be no growth in demand for power in the coming financial year 2017-18. This comes against likely projection of 10.32% increase in power demand by discoms.
    Electricity Consumers Society, headed by Nene, has submitted its objections against tariff hike and revenue requirement petition filed by discoms of the state.
    As per the submissions of the society, “In the past four year, actual consumption has been 15-20% less than what was projected. Further, there is unlikely to be any growth in power demand during 2017-18 because of energy efficiency programme ‘UJALA’ undertaken by Madhya Pradesh Urja Vikas Nigam. In an advertisement carried in local papers dated January 5 of this year, it was mentioned that one crore LED bulbs purchased in Madhya Pradesh will help save power to the extent of 50 lakh units per day. This works out approximately 1800 MU per year.”
    “The society therefore submits that no growth be allowed on domestic consumption during 2017-18 annual revenue requirement will improve by over Rs 150 crore,” says a petition submitted by the society.
    The society, in its petition, suggested various options, including loss reduction and proper management of power while claiming that these initiatives can save Rs 1000 crore and thus bridge the revenue gap. “The balance can be controlled by proper management of power purchase costs and progressive reform decisions like UDAY, meant for revival of debt-ridden power discoms. The society therefore submits that at this stage, no tariff revision is called for,” said the committee.
    It is noteworthy that discoms have sought an average power tariff hike of 10.65% for 2017-18 against a revenue gap (difference between income and expenditure) of more than Rs 4,000 crore. Johnny Bucyk Jersey

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