Consumers Split Over Power Privatisation

While the northern and eastern states have a better chance of garnering public support for privatising power distribution and initiating tariff rationalisation, consumers in the southern and western states are not yet convinced about the benefits of privatisation.

According to the CII-ORG Marg survey on consumer attitude towards power supply, consumers in the northern and eastern states (despite the Orissa experience) feel the power supply will improve with privatisation of distribution.

About 60 per cent of the consumers surveyed welcomed distribution privatisation as a means of improving the overall power situation.

However, consumers in the southern and western states expressed their unwillingness towards distribution privatisation.

About 50 per cent of the consumers expressed their readiness to pay a higher tariff for better supply. Consumers in the northern and eastern states were for tariff rationalisation to root out the inherent subsidies across categories in power tariff structures.

Most consumers from the southern and western states, however, are unwilling to pay more for better supply and against the tariff rationalisation.

Interestingly, 60 per cent of the farmers expressed their readiness to pay more for the quality supply. About 20 per cent of the farmers said they were not in favour of the poor power supply free of cost.

Across the consumer categories, about 85 per cent of the industrial consumers are in favour of privatisation of distribution. Nearly 50 per cent of the industrial consumers, who along with commercial category pay the highest tariffs at present, are open to the idea of paying more for a better supply.

About 60 per cent of commercial consumers are in favour of privatisation of distribution and feel the supply will improve if the state gets out of distribution.

About 35 per cent of the commercial consumers are ready to pay higher tariff for better supply, 60 per cent of the consumers are for tariff rationalisation.

Across consumer categories in all parts of the country, dissatisfaction over procedural delays during connection, interrupted supply and voltage fluctuations were listed as the main grievances.