ACCI raises red flag on Power department

The Arunachal Chamber of Commerce & Industries (ACCI) today expressed strong objection to non-optimal use of the state's own hydro power stations by the Power department, purchasing power from outside at the cost of the state exchequer and passing the cost to its consumers.
In a representation to the State Electricity Regulatory Commission (SERC) secretary, ACCI sought clarification in the matter and urged the secretary to direct the department to optimise the use of domestic resources, reduce the cost of power purchase, and increase revenue through sale of surplus power available from state share of the central sector power projects, a communique said.

Referring to the department's petition for annual revenue requirement and tariff proposal for 2014-15, ACCI noted that its transmission and distribution losses for 2012-13 was "abnormally high" at 60.4 per cent.
It said the status reflected the department's inefficiency to reduce the losses and the same had been passed on to the poor, hapless, honest consumers.
It urged the North Eastern Regional Load Despatch Centre, which restricts power drawl during the lean season, to direct the Power department to enter into banking arrangements for the surplus power available during the high hydro season (April-September) with other power-starved states so that the power so banked could be bartered during the lean season.

The department's proposal for purchase of power was also not justified, it said, adding that the power purchased during 2012-13 was less than the cost of the power purchased during 2011-12.
"The saving on account of this is Rs 33.60 crore. The benefit of saving should have been passed on to the consumers, but the department and the commission both did not propose it, and instead hiked the tariff for the following years," it said.
The ACCI also urged the secretary to reduce the tariff on electricity surcharge and minimum charges, saying they were unreasonably exorbitant.