People's Democracy

(Weekly Organ of the Communist Party of India (Marxist)

Vol. XXVI

No. 51

December 29,2002


Bengal LF Launches Agitation To

Roll Back Electricity Bill

B Prasant

THE Bengal Left Front has called for a statewide movement to force the BJP-led union government to withdraw the Electricity Bill-2001, which calls for an end to cross-subsidy and paves the way for enhanced electricity charges. A vast procession was organised by the Left front in Kolkata to mark the beginning of the movement. 

In an appeal to the people of the state, the Bengal Left Front has said that the notion of cross-subsidy, where the high-end users paid higher rates than the low-end users, has been employed to ensure that the latter is protected from higher rates while doing away with the need to bring in state subsidy.  Withdrawal of cross-subsidy will leave the low-end user exposed to rates that are much higher than what he has to pay currently.  The payments of arrears for the higher rent (for 2001 and 2002) will be an added burden.

The latest move by the state-level electricity regulatory commission, a quasi-judicial body, has resulted in a substantial hike in the monthly electricity rates of the Calcutta Electric Supply Corporation Limited (CESC) as the Table alongside will show. 

Units Consumed

Current Charges (Rs)

Proposed Charges (Rs)

Proposed Arrear Payments (Rs)

25

40.00

97.75

154.25

50

92.50

195.50

296.00

60

113.50

234.60

352.70

100

225.50

391.00

551.50

150

388.00

586.50

777.50

200

555.50

782.00

998.50

300

890.50

1173.00

1440.50

 

(All charges are on a monthly basis)

 

The refixation upward of the electricity rates of the CESC will adversely affect more than 16 lakh low-end users while benefiting 1.5 lakh of high-end users who shall now pay considerably less than they would do earlier; the latter would also stand to benefit from the substantial refund that has been announced for them. Severely affected will be all schools, colleges, universities, hospitals, libraries, clubs, and self-help groups.

Once the state-level electricity regulatory commission gets around to working out the same methods in the rest of Bengal, more than 87 per cent of the power consumers under the state electricity board will face a substantial financial burden.

Launching a bitter attack on the Electricity Bill-2001, the Bengal Left Front has said that once this bill is made into an Act, electricity supply services will in effect get transferred out of the states’ list to the union list.  The state governments will henceforth have little or no role to play in the supply of electricity in the states.  The state electricity boards will be phased out and the entire power service sector privatised. 

The economic life itself will be affected what with the profit-hunting private sector expecting to go in for further hikes in electricity rates the moment they are allowed to take control of this sector.  The service itself will surely deteriorate, as has been the general experience with privatisation of this crucial sector.    The Dabhol project of the Enron Corporation remains a bitter and lasting testimony in this regard.

Dwelling on the role of the state Left Front government, the Bengal Left Front said that the state government has decided to contest in court the decision of the state electricity regulatory commission to withdraw cross subsidy.  Earlier, Bengal chief minister, Buddhadeb Bhattacharjee had written to the prime minister, exhorting upon him to amend the act that calls for ending cross-subsidy in the power sector.  In Bengal, in the meanwhile, the people-oriented rural power development corporation has forged ahead towards the task of providing electricity at cheap rates to the people in the villages.