THE Calcutta High Court on August 1 quashed the West Bengal Electricity Regulatory Commission's (WBERC) decision to abolish cross-subsidy in the Calcutta Electric Supply Corporation's (CESC) tariff structure and impose in its place a uniform tariff for both industrial and domestic consumers. The High Court directed the Regulatory Commission to redraw the CESC rates.
Earlier, the CESC fixed the average tariff for the lowest bracket of consumers at 160 paise a unit; for the middle class and the affluent class at 225 paise and 490 paise respectively; and for industrial consumers at around 460 paise. However, with the WBERC fixing the tariff at a uniform 390 paise per unit, the poor and the middle class were hit hard, having had to pay 230 paise and 165 paise more respectively, while the affluent and the industrial consumers were to pay 100 paise and 70 paise less respectively (Frontline, January 31, 2003).
The court has given the Regulatory Commission the authority to recommend higher rates for industrial consumers as they can balance the burden of the hike by passing it down to consumers through increased prices. The Commission has also been empowered to determine the extent of differentiation of tariff after hearing both parties that will be affected. The State government is at liberty to give direct subsidy, if it so chooses, to a particular party after the differentiation of tariff. The court order further states that if the revised tariff is lower than the existing rate, the CESC will not have to refund domestic consumers the excess charge they have paid.
The Left Front government had been against the abolition of cross-subsidy. Power Minister Mrinal Banerjee told Frontline: "In the kind of society we live in and the socio-economic conditions prevalent here, abolishing cross-subsidy at on go is extremely pernicious." The State government took the matter to court in March this year. The WBERC was set up by the State government and its members were selected by a panel comprising the Chief Secretary, a High Court Judge and a member of the Central Electricity Authority. However, the State government made it a point never to interfere with the Commission's affairs, in order to ensure its independence in going about its function. "But we could not even conceive of the ERC (Electricity Regulatory Commission) abolishing cross-subsidy in one sweep," said Mrinal Banerjee
Suhrid Sankar ChattopadhyayCOMMents
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