SHILLONG: Chief Minister Mukul Sangma said on Friday that state governments face the challenge of cross-subsidisation of tariff on electricity for residential consumers and farmers by selling power to industries.
Addressing the inaugural function of a seminar on ‘Power Conservation Techniques — a Roadmap to a Green Environment’, Sangma said, “For a state government the challenge is always how to look at cross-subsidising the tariff for consumers and how energy saving mechanism can enable us to sell the saved power to industries at a tariff to cross subsidise the domestic consumers’ tariff.”
Cross-subsidy surcharge is levied from industries when they buy power from open market rather than from state-owned utilities.
The high tariff for industries help states make up for the losses incurred due to cheap power to farmers and other consumers.
In June, NITI Aayog recommended doing away with cross-subsidy and power utilities realising full market price from all consumers.The aim of the seminar was to study various methods to reduce power consumption by using innovative materials, designs and technology.
Production of renewable energy was the focus area of the seminar that was attended by 130 dignitaries from the Army and other premier institutes like IITs, NITs, NEHU, NEEPCO and other state agencies.
Talking about the relevance of conservation of energy in today’s world, Sangma told the gathering at the State Convention Centre that the Electricity Act, 2003, addresses the concern of tapping resources to meet demand.
He added that the state government has adopted a policy in sync with the central act and it would meet energy demand from renewable resources.
At the same time, he reminded that to tap other potential sources, the state has to approach private entities.
The state faces acute power shortage and as many as 19 projects are yet to be implemented. “The government has embarked on standalone projects for villages and habitations which are far away from generating stations. The mode of transmission and distribution is also crucial for saving energy,” said the chief minister.
GOC 101 Area Lieutenant General Dipender Singh Ahuja said the armed forces have taken major initiatives towards energy conservation and in Shillong a special drive has been undertaken to convert all luminaries into LED.
The seminar concluded with the pledge to bring out ‘A Way Forward’ for green and clean energy solutions for Meghalaya.
