The
decision of the newly-sworn Aam Aadmi Party government regarding slashing of
power bills by 50% for consumers, by offering to finance it through a
government subsidy clearly shows that they stand to offer nothing new in terms
of radically new governance.
There has been
long allegations and protest by people of Delhi that they are being overcharged
by distribution companies. The present CM himself, in his more radical days,
went around tearing off power bills, asking people to not pay their bills. But
an important issue has been glossed over in the name of rallying against the
alleged "corporate harassment" of power companies. The fact of the
matter is this – Delhi is largely seen as the power theft colony of India.
Estimates vary, but the AT&C (Accumulated Transmission and Commercial
losses) in distribution ranges from a staggering 30-50%! These are essentially
from people, illegal housing colonies putting a hook on power lines and drawing
power, without paying. Imagine, if 100MW is available for distribution, the
company can't recover costs on this 30-50%. So essentially, they can recover the
full cost on only 50% of the electricity they distribute. This leads to a
pricey bill for middle-class consumers who are regularised/metered consumers.
This illegal power theft is politically patronised. It is not a practice common
to Delhi alone but a common fact of life across India.
So,
Mr.Kejriwal instead of offering to take institutional measures to curb this
spurious theft has followed the oldest trick in Socialism 101. Offer subsidies.
Train people to pay less for what costs more in the market. The problem is once
people get used to this artificially supported cheap power, it is very hard to
get them to pay as per market realities – check the issue of Petrol deregulation
for starters. While his steps towards forcing companies to a CAG audit is
welcome, he should go ahead for a Social Audit for all parts of Delhi and take
strict action against people drawing illegal power. That would truly be a step
in the right direction to help the Aam Aadmi.