SAI Computers controversy: Part 2 of 3
From Biplab Kr Dey
TURA/SHILLONG, June 18: While SAI Computers hides behind the shield of state-mandated tariffs, a trail of missing licenses, ignored traditional laws, and inflated bills has turned the Meghalaya government’s privatization experiment into a lightning rod for rural fury.
The power distribution company (discom) has come under heavy scrutiny from pressure groups and the public in the Garo Hills after recently being ousted from Mawsynram. Complaints range from irregular power supply to incorrect and inflated billing. The backlash has intensified to the point where many are demanding the company’s contract be terminated, and Chief Minister Conrad Sangma has even hinted that the state government is considering cancellation.
No sooner had SAI Computers entered Phulbari in the West Garo Hills than pressure groups and consumers began questioning irregular electricity supply, arbitrary fines, and over-billing.
Role of distribution franchise
How exactly are these tariffs calculated, who decides the amounts, and what is the actual role of a distribution franchise?
A Distribution Franchisee (DF) is an arrangement where a state power utility appoints a private company to manage specific operational aspects of electricity distribution within a designated area. Crucially, the core power infrastructure, electricity network, and ownership of the distribution system remain with the state utility—the Meghalaya Energy Corporation Limited (MeECL). The franchisee does not own the power lines, transformers, or the electricity being supplied. Instead, its mandate is strictly to improve operations and service delivery within its assigned territory.
In Meghalaya, SAI Computers Limited was appointed as an Input-Based Distribution Franchisee (IBDF) for areas including Dalu, Phulbari, Nongalbibra, and Mawsynram. Under this model, the company is responsible for meter installation and maintenance, meter reading and billing, revenue collection, handling consumer grievances, basic network maintenance and transformer repairs and reducing technical and commercial energy losses.
Within this framework, the state distribution company (MePDCL) retains responsibility for the operation and maintenance of the high-voltage 33 kV distribution network, while the IBDF manages the 11 kV and lower-voltage lines that feed directly into homes.
Who controls the tariffs?
Electricity tariffs in the state are determined exclusively by the Meghalaya State Electricity Regulatory Commission (MSERC), an independent regulator established under the Electricity Act, 2003. Under Section 86 of the Act, the Commission holds the sole authority to set tariffs for the generation, transmission, supply, and distribution of electricity.
Every year, MePDCL submits its Aggregate Revenue Requirement (ARR) and tariff proposals to the MSERC. The Commission reviews the petition, weighs operational costs, and evaluates public objections and stakeholder submissions before issuing a final tariff order.
“We have no role in determining tariffs, increasing or decreasing rates, or imposing new charges on consumers. These adjustments must go through the statutory regulatory process,” a company representative stated. “To put it simply, the MSERC decides the tariffs, the MePDCL owns the distribution network, and we merely manage day-to-day distribution operations in specific franchise areas.”
According to company sources, the intense flak SAI Computers has drawn over the past few months stems from the fact that they are the primary point of contact for consumers.
“Most people interact with us for meter installations, replacements, bill deliveries, collections, and complaint resolutions. Consequently, when electricity bills spike, consumers naturally associate the hike with the company they see on the ground,” the representative added.”However, changes in electricity tariffs generally arise from regulatory adjustments, fuel and power procurement costs, and utility revenue requirements approved by the MSERC. These are decisions taken within the regulatory framework, not by the franchise operator.”
Public concerns and billing controversies
Despite these explanations, recurring criticism has centered around billing transparency and service delivery. In Mawsynram, pressure groups, village leaders, and local organizations staged massive protests against the company, citing unusually high bills and questioning the viability of the franchise model itself.
Following a demonstration outside the residence of Power Minister Metbah Lyngdoh by residents facing exorbitant bills, Lyngdoh directed his department to take all possible legal and administrative measures against SAI.
Pressure groups in Mawsynram had been demanding that SAI’s contract for the sub-division be scrapped since January 2026. Beyond the billing issues, local leaders pointed out that the company had failed to obtain a mandatory No-Objection Certificate (NOC) from the concerned Rangbah Shnong (village chief) to run its office from the Dorbar Shnong Mawsynram. The company also failed to secure a local trading license, while the local MLA flagged the billing rates as unusually high.
Similar grievances have cropped up in Dadenggre. Local organizations there formally complained about alleged billing irregularities, including claims that bills were issued without proper meter verification and that functioning accounts were arbitrarily marked as “defective” without physical inspections.
While SAI maintains that it only handles the operational mechanics of billing and maintenance on behalf of the state, the mounting friction eventually proved unsustainable. The controversy—marked by protests, legal disputes, and intense government reviews—ultimately forced the Meghalaya Government and MeECL to officially discontinue SAI’s engagement in the Mawsynram Sub-Division.
