At the root of the challenge to achieve universal electrification is the inability of the discoms (distribution companies) to maintain power grids and equipment, which impairs their ability to supply surplus electricity. What has complicated the matter is the refusal of states to increase their power bills, which means discoms are dis inclined to buy more power resulting in frequent outages and blackouts.Then, there is considerable free power doled out to farmers for irrigation, an elephant in the room that nobody wants to discuss since it has a direct impact on vote banks.In November 2015, the government had launched the ambitious scheme, Ujwal Discom Assurance Yojana (UDAY), to alleviate the financial health and operational efficiency of India’s debt ridden discoms. A few years down the road, the progress has been patchy and is found wanting on many counts.Highlights of the New Tariff PolicyGiven this shaky state of affairs, let’s look at some key proposals of the policy which intends to improve the quality of service for the end consumer.Choice of energy supplier The consumer will now have a choice of energy supplier and will be able to migrate or switch between suppliers based on the quality and cost at which the services are provided.Penalty for load shedding The new policy aims to bring about discipline in the manner in which load shedding is carried out and discoms shall be penalised for any arbitrary load shedding and money credited to the consumer’s account.Major disruptions All major disruptions including outages in transformers and the like will have to be attended to by discoms in a time bound manner.Energy inefficiency Discoms can no longer pass the inefficiency which inter alia stems from their operations onto consumers.
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