Poor management of electricity producing and distribution undertakings have contributed in the steep hike of power tariff the government proposes to impose on consumers from April 1.
The Bihar Electricity Regulatory Commission (Berc) has hiked electricity tariff by an average of 55 per cent for various categories of connections in the steepest increase in the last several years.
There was no hike for the financial year 2016-17 that draws to an end on March 31. The last increase, in 2015-16, was 2.5 per cent on average. Before that, there was an increase of 6.9 per cent in 2012-13 and around 20 per cent in 2011-12.
The latest Comptroller and Auditor General of India report on public undertakings tabled by finance minister Abdul Bari Siddiqui in the Assembly on Monday hints at the failure of the Bihar State Power Holding Corporation Limited (BSPHCL) and its franchisees failing in its objectives to bring down the aggregate technical and commercial losses to 23 per cent, which is at present above 50 per cent. It also pointed towards losses incurred by power companies for failing to install meters.
In Gaya, consumers without meters were more than 12 per cent, in Bhagalpur it was more than 10 per cent and in Muzaffarpur it was almost 6 per cent. The two power distribution companies - North Bihar Power Distribution Company Limited (NBPDCL) and South Bihar Power Distribution Company Limited (SBPDCL) - are incurring a loss of more than Rs 1,000 crore a year.
The CAG report also indicated failure of the authorities to check power theft.
"Theft of energy by tampering meters and rampant hooking by unauthorised consumers result in substantial losses," the report stated, pointing out that the authorities do not even check 5 per cent of the electricity connections, which has been made mandatory under the Bihar Electricity Code, 2007.
It has also pointed towards failure of distribution licencees to finalise average-billing rate. The report hinted at excessive billing, short recovery because of failure to include meter rents and pending dues. The report maintained that consumer dissatisfaction is high.
The CAG report also picked up holes in the functioning of the Bihar State Hydroelectric Power Corporation Limited, whose generation cost varied from Rs 8.13 per unit to Rs 12.36 per unit between 2011 and 2016 but sold power to distribution companies at Rs 2.49 per unit. It has resulted into a loss of Rs 147.66 crore for the company. The Bihar State Hydroelectric Power Corporation Limited has not yet petitioned the Berc to increase its selling rate thus remaining static at Rs 2.49 per unit.
It pointed towards increased money borrowing by the company and decrease in power generation too. During 2011-16, the company produced less than half its capacity.
The report hintedat a bleak future of public sector undertakings (PSUs) in Bihar. The state has 74 PSUs out of which 40 have been shut down. "Out of the 34 working PSUs, 31 companies with 202 accounts have not submitted their accounts for audit for the past 25 years. We do not know about their financial position," said accountant-general (audit) Dharmendra Kumar.
As on March 31, 2016, the investments in the 74 PSUs stood at over Rs 46,500 crore. The power sector accounted for over 82 per cent of the total investment. Out of the 34 working PSUs, 15 earned a profit of Rs 544 crore, while 14 PSUs incurred a loss of more than Rs 1,144 crore. Three PSUs showed nil profit-loss and two had not finalised their first account.
The PSU, which incurred heavy losses were South Bihar Power distribution Limited - Rs 747.55 crore, North Bihar Power Distribution Company Limited - Rs 296.79 crore and Bihar State Road Transport Corporation - Rs 59.23 crore.