People's Democracy

ON February 16, the CPI(M)’s Delhi state unit held a convention to expose the anti-people proposal to hike the power tariff steeply. At the convention, two experts --- Ashok Rao, a senior executive of a central government public sector undertaking and president of the Federation of PSU Officers’ Associations, and Prabir Purkayastha, president of the Delhi Science Forum --- explained the negative impact the proposal will have in Delhi. The convention strongly condemned the policies being followed by the BJP-led central government and the Congress-led Delhi government to privatise the power sector at the dictates of the World Bank. Both these parties and their governments are equally responsible for the crisis in the power sector in the capital city of Delhi, it was explained.

All the speakers at the convention strongly opposed the huge hike in power rates proposed by the Delhi Vidyut Board. The Delhi government has, with the help of the central government, already started privatising the transmission and distribution of power. In a warning to the government, the convention said that the working people of Delhi, already burdened by high prices of essential commodities, will not tolerate such an unjust and unequal economic burden proposed to be imposed on them.

The proposals of the DVB will victimise the poorer sections of consumers who use less electricity. For example, those who use up to 50 units and pay a bill of Rs 50 today will face an increase of 200 per cent, and will have to pay a bill of Rs 150. Those who use up to 100 units and pay a bill of Rs 100 will face a 150 per cent increase and their bill will go up to Rs 250. A middle class family which has some electrical gadgets and uses between 200 and 400 units will also find that their bills, which are between Rs 500 to Rs 600 today, will sky-rocket to over Rs 1000 a month. In contrast, the richer sections who with their luxurious life styles use much more electricity, will have to pay a much smaller increase of 40 to 58 per cent. Thus the first opposition to the power hike is that it makes the poor pay more than the rich users. This is a reverse subsidy for the rich by the poor which the convention strongly opposed.

It was explained at the convention that the losses of the DVB are to the order of Rs 1000 crore. In addition to losses in transmission, this is because electricity is stolen and bills are not paid. The losses come to about 55 per cent of the total electricity produced --- one of the highest loss percentages in the country. This is more than double the loss of 22 per cent estimated in 1992-93. In other words, the years of the so-called "reform" have meant bigger losses. It is not the honest taxpayer or the slum dweller who is responsible. It is industry, commercial establishments and residents of posh colonies who steal electricity and do not pay their bills. Now the poor and middle classes of Delhi are being asked to pay for the theft of electricity by the rich. Besides, successive governments have also ignored the maintenance of power plants.

The convention, in its press release, condemned and protested against the privatisation of the distribution of power which has already taken place in many of the slum clusters. Contractors have taken over power supply, charging arbitrary rates for installation and distribution. Thus the government escapes its responsibility in providing electricity to slum dwellers who are left at the mercy of private contractors who have no accountability to them.

The convention asked the Delhi government to take note of the bitter experience of other states where the power sector has been privatised. There has been no improvement at all in either power production or its distribution. It has meant huge hike for consumers such as in Andhra Pradesh, Orissa, Gujarat, Karnataka and Rajasthan leading to widespread popular protests. It has also meant additional losses to the state electricity broads. The Enron scandal in Maharashtra --- where the MSEB is being asked to pay Rs 2000 crore to a multinational for electricity it does not need and at rates which are four times the cost of the electricity produced by the MSEB --- is an example of the adverse impacts of power sector privatisation. In Orissa, after the terrible cyclone, the private power companies blackmailed the government into giving them huge low interest loans. They also forced an agreement by which they hiked electricity rates by 200 per cent.

The convention decided on a charter of demands. One of the demands was that the government reject outright the huge hikes proposed by the DVB. The only sections, which can be asked to pay more, are the richer sections who are consuming huge amounts of electricity.

The convention also demanded that the government publish the details of the defaulters who have failed to pay their electricity bills and all those who are stealing electricity. It demanded that the government take strict action against these people. It also asked the government to ensure that the losses are brought down to the earlier levels. For this it will be essential to hold discussions with engineers, workers and employees in the power sector and not use them as scapegoats.

Another demand was that the present policy of handing over power distribution to contractors in slum areas be stopped and reversed. The government must take the responsibility of providing individual electricity meters to slum dwellers at fixed rates.

The convention asked the government to give up its proposals to bring so-called independent power producers like Enron, to the Delhi’s power sector. Instead, the government should negotiate with the NTPC to set up dedicated power stations for Delhi.

The convention called upon all sections of the working people, middle class, employees and professionals to strongly protest the current privatisation policy of the central and Delhi governments which will worsen the power situation and cause further losses to the public exchequer. It called for a strong and stiff resistance against the proposed hike in power rates. (INN)