Now Pay less if you consume more Electricity: Modi Government New power plan

Major reforms are expected to take place in the power sector as the official committee recommends lower tariffs for heavy users to increase electricity consumption. The committee has been appointed by the government to devise methods to increase electricity demand. In India, consumers have been paying higher bills for higher consumption. The slab rates are fixed in such a way that if you consume more you have to pay more. The committee feels that the government need to provide incentives to higher consumption group in order to encourage electricity consumption.

The slab rates have not been changed since independence and designed when the country is in surplus production but now India moves from a condition of deficit to surplus electricity. The committee is composed of the chairman of the Central Electricity Authority, secretary of the Central Electricity Regulatory Commission (CERC), president of industry body Ficci, energy secretaries of Bihar and Tamil Nadu and principal energy secretaries of Madhya Pradesh, Gujarat and Uttar Pradesh. 

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The committee is of the view that the tariff rates need to be revised and the states have to offer incentives to industrial commercial and service sectors. The committee further opined that states have to devise lower tariffs, particularly during the night and off-peak hours. Such type of the system is in existence in Madhya Pradesh, which has witnessed an increase in power consumption. 

Other ways to increase consumption included manufacturing under Make in  India through electricity assurance,  use of electric vehicles and utilisation of electric equipment in construction activities. Currently in many states, households that consume more than 800 units are considered large domestic consumers.The committee is in the stage of finalising report and likely to present to power ministry by January end.

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