Discoms get ready for winter demand

NEW DELHI: The AAP government's move to reduce electricity tariff by enhanced subsidy may have another repercussion. Sources said power companies are now preparing for an increased demand during peak winter in January and February, with a reduced rate for up to 400 units of consumption. Power officials anticipate 8%-10% jump in peak demand due to subsidized rates. And, this does not include the annual growth in demand.

The winter demand generally peaks in January during morning or late in the evening when most households switch on heating appliances and geysers. Industry officials feel the households that used one heater in a day may easily switch to two for practically the same price they were paying last month. Industry officials who have been studying consumption patterns of households across the city say people's habits are not easy to break.

"The reduced tariff will encourage greater consumption. Rather than cut down on bills, most households will be inclined take advantage of the lower tariff by using more power. Households that limited their consumption to 200 units for subsidy can now afford to go up to 400 units,'' says an expert.

Discoms say subsidized tariff can also discourage energy-saving schemes in households. "Consumers will no longer feel the need to conserve power. There is no more incentive left. We have been advising people to switch off fans and lights but those who were careful till December last year may stop caring," said a discom official.

Discoms also expect the consumers within the the 201-400 units slab to increase substantially. Many experts said subsided tariff was unhealthy for the power sector as a whole and voiced concerns on its implications. "Energy is a valuable resource. Whether the reduced tariff will encourage households to reduce their bills or increase consumption remains to be seen," said a senior official.