Power tariff hike plan sparks outcry, critics question need

Panaji: A proposed 5.95 per cent hike in electricity tariffs has sparked strong reactions from the public and political parties.

Several public representatives, industrial consumers, and consumer organisations have raised their concerns over the proposal, calling it a heavy burden on the common man and local industries.

Opposition Leader Yuri Alemao has raised his objection to the proposed hike in power tariff. Alemao, in a letter to the Secretary, Joint Electricity Regulatory Commission said, “I believe that increasing electricity rates will place an undue burden on consumers, particularly households and small businesses”. 

He said that the hike will lead to higher living costs, impacting the already strained budgets of many Goans. “The Electricity Department has failed to recover dues of around Rs 600 crore from industries and other business establishments”. stated Alemao.

Alemao also said that the Electricity Department should investigate the reasons behind the revenue gap, with a primary focus on Aggregate Technical and Commercial (AT&C) losses. “AT&C losses, resulting from technical issues or unauthorized consumption, lead to a significant amount of generated or purchased power not reaching consumers, thereby impacting revenue”, said Alemao. 

Durgadas Kamat, representing the Goa Forward Party (GFP), said that tariff hikes were implemented in 2018 and 2019, and now another hike is being planned for the next five years.

“If the government is providing budgetary support to the Electricity Department, then why is a hike needed? Despite efforts to improve infrastructure, rural areas still face major challenges,” he said. He also mentioned a recent issue where people were forced to shift to prepaid meters, which resulted in additional expenses for households. He agreed that billing has improved since the Opposition intervened but stated that there is still no visible improvement in the power sector.

He detailed the proposed compounded tariff hikes: 5.9% for 2025–26, 5.64% for 2026–27, and 4.88% for 2027–28. If government departments cleared their dues of Rs 200–300 crore, such hikes would be unnecessary, he asserted.

An industrial consumer said that continuous process industries will face an additional 15% increase due to the new time-of-day (TOD) system, which charges more during peak hours. He compared it to running a restaurant that cannot shift its operations to the morning to avoid higher charges. Additionally, he said that switching to KVAH billing, especially with power factors at 0.9, would lead to an automatic 10% increase in charges.

Roland Martins, GOACAN coordinator, spoke about the misuse of domestic power connections by commercial businesses, especially in tourism-heavy areas. He said that the department should verify connections and take action against such misuse. “New buildings are being used for commercial purposes but are still under domestic categories,” he stated.

He also asked whether there had been any audit of large projects tendered over the last decade and recommended a White Paper detailing the department’s plans to reduce its losses and improve efficiency.

Anish D’Souza from the Confederation of Indian Industry (CII) appreciated the department’s capital investment plans and support for smart metering. He suggested digitisation could help reduce losses. However, he raised several concerns, including the inconsistency in green energy tariffs, which makes planning difficult for industries.