Person of the week
‘There is no transparency in the operations of the power sector’
Haima Deshpande
Haima Deshpande
01 Feb, 2014
Mumbai North Congress MP Sanjay Nirupam is agitating against a disparity in city and suburb power tariffs
Last week, Sanjay Nirupam, Congress MP from the Mumbai North constituency, took on Anil Ambani-owned Reliance Energy, demanding that the tariff be reduced for the 2,600,000 consumers it provides power to in his constituency. Nirupam sat on an indefinite hunger strike in front of the Reliance Energy office, but no official from the energy provider met him; it was the Congress-NCP led state government that intervened. He called off his fast after three days on assurances from Chief Minister Prithviraj Chavan. Nirupam is angry at the state’s decision to intervene and pocket the losses Reliance Energy will face in the event of a reduction in power tariff for his constituency. He has given the government two weeks to meet his demand. Else, he threatens ‘other methods’. Nirupam is well aware that his struggle against the company will not be easy, as there are many who want to see him fail.
Q Hunger strikes by politicians seem to be in vogue. Why yours?
A I have been agitating against Reliance Energy for some time now. But all doors were closed. So I had to adopt other means to make the company take notice of our demand.
Q So did the company take cognisance of your hunger strike?
A No one from Reliance Energy came to meet us or talk to us. Instead, the state government came to find out the reason for my protest. The company did not promise us anything. But Chief Minister Prithviraj Chavan gave assurances that some action on tariff reduction will be taken in a couple of days.
Q Why did you call off your fast despite no concrete decision on your demand?
A When you belong to the ruling party and the head of that party intervenes, what do you do? I wrote to the Chief Minister that, like [in] Delhi, power bills must be reduced in Mumbai too. He has responded positively and promised action by next week. But this will be a subsidy. The government will pay for Reliance’s losses. I cannot understand why the government alone should bear the entire loss. Reliance should also share the burden. This is not my personal fight. It is the fight of 26-lakh consumers who avail of the company’s electricity.
Q What happens if there is no action? Will you ask people to stop paying electricity bills?
A I will adopt other means of protest if the demands are not met. I will never ask people to stop paying electricity bills. I have no moral right to tell the people so. Even if I do, I hope they do not listen to me. In Mumbai and its suburban areas, the number of those who do not pay bills is a small number. This city has a culture of people paying for services they get.
Q Should there be an audit of power discoms?
A Definitely. After the privatisation of the power sector, the government does not have a role to play there. Hence there is no transparency in the operations of this sector. There is definitely a nexus between the regulator (Maharashtra Electricity Regulatory Commission) and the distributor companies. The people have a right to know the reasons for an increase in power tariff. Reliance Energy supplies power to 90 per cent of suburban Mumbai consumers. It is almost 30 per cent [more] costly than Tata Power, the other distributor.
Q Why the disparity in power tariffs for Mumbai city and its suburban areas?
A The government must re-look at the Electricity Act post privatisation. There has to be a uniform tariff system for the city and for suburban areas. The service providers have become dictators. The regulatory [body] is just [not] doing enough. Presently this body only seems to be thinking of the profits of [private] power companies.
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