Inadequate tariff hikes weakening Discoms’ financial position, says Power Minister

On track to achieve 24×7 ‘Power For All’ goal: RK Singh

The Minister of State (Independent Charge) for Power and New and Renewable Energy, RK Singh, told the States that rampant cross subsidisation of power cannot continue.

Inadequate electricity tariff hikes by State distribution utilities (DISCOMs) have weakened their financial position due to rise in the average cross subsidisation of power. This was despite the Centre’s push towards reducing the gap between cost of power procurement and supply.

The muted tariff hikes were implemented despite an increase in establishment costs, coal price and higher demand, according to a presentation at the State Power Ministers’ conference in Gurugram on Tuesday.