MUMBAI / New Delhi: Power distribution companies are afraid of financial ruin as a recent government directive allowing industrial consumers to buy electricity directly from producers and traders will eliminate the third of their income, leaves no room for cheap consumables farmers and retail consumers.
Decree Law Department in step with international practices, hurray industrial buyers who complain energy prices in India are unusually high, but SOE said small consumers face a "tariff shock" if high-paying customers migrate. Regulators in states like Gujarat, Tamil Nadu and Maharashtra are planning to organize stakeholders meetings on the subject.
The move could exacerbate the problems of the electricity sector, where projects for the creation of more than 43.000 MW uncertainty face a fuel supply and the banks that are financing projects of Rs 1,6 lakh crore, defaults fear .http://www.blogger.com/img/blank.gif
The Ministry of Law says that distribution companies have a duty to provide network access to major industries that consume more than 1 MW generators and regulators can not determine the fees for them.
"Nearly 30% of our revenue comes from consumers who use more than 1 MW. If you were to go away, who will cross-subsidize the poor and rural consumers? Will lead to tariff shock and the weight will fall below to smaller retail consumers, "Maharashtra State Electricity Distribution Company managing director Ajoy Mehta said.
Article source:- http://economictimes.indiatimes.com/news/news-by-industry/energy/power/govt-directive-allowing-purchase-of-power-by-industries-from-producers-may-hit-discoms/articleshow/11383465.cms
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