Power ministers' meet: States agree on 24X7 power for all by March 2019, direct transfer of subsidies

in power •  7 years ago 

New Delhi: Power Minister R K Singh on Thursday said most of the states have agreed on 24X7 power for all, 90 percent pre-paid meters and direct benefit transfer (DBT) of subsidies for electricity consumers across the country.

"Our vision is that we want 24X7 power for all by March 2019. Now it will be a legal obligation. After March 2019, if there is any load shedding without any reason, there will be penalties except in case of technical issues or act of God," Singh said.

He was addressing reporters at a conference of 'Ministers for Power and New & Renewable Energy of States & Union Territories' here.

The minster said all the participant states have agreed to provide 24X7 power to all.

He further said there would be 100 percent metering (of electricity supply) and 90 percent of this would be pre-paid meters.

"We are doing away with the human interface totally in metering, billing and collection. The payment for electricity consumption will be through mobile phone. All states have agreed on this," he said.

Asked about the deadline for achieving the goal of 90 percent pre-paid meters in the country, the minister said there is no deadline.

"But we have to reduce losses by January 2019 to ensure 24X7 power for all by March 2019. It is agreed that the (distribution) losses would be reduced to below 15 percent by January 2019," he said.

Singh said the other issue that was discussed was cross subsidisation, as some states have 19 slabs of tariff. The power tariff will be remodelled according to the report presented by an expert committee on Thursday.

He explained that the cross subsidy would not be more than 20 percent (the difference between highest and lowest tariff).

Tariff policy provides that cross subsidy would be brought down to 20 percent in the first phase. It will help in reduction of tariff for a section of consumers.

About the direct benefit transfer for consumers he said: "Any subsidy you want to give to any category of consumers, it has to go through DBT. That would be the law. All states agree on that."

The minister also made it clear to states that any tariff decided after the bid has to be adopted and power purchase agreements have to obeyed because that is the law.

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