Rising Sun & Ever Failing Rajasthan DISCOM
So the Distribution companies a.k.a. DISCOMS did it again; Power prices in Rajasthan are set to be raised by 6-12% within the coming months of this financial year. So, we here in our ‘Rangeelo’ Rajasthan are all set to feel the heat of Sun as well as DISCOMs.
Let’s see how DISCOMs have failed miserably in the past and how we can save ourselves from mounting electricity prices.
As evident from the above analysis, power tariffs in Rajasthan are rocketing upwards to catch up with the debt burden of DISCOMS. And the bad news (for your pocket) is, these are not going to stabilize in the near future i.e. we should start preparing to shell out more and more mullah as electricity charges. On the other hand, the price of solar power has fallen constantly during the same period.
Let’s see another analysis regarding the trends and projections of conventional (DISCOM power) and solar power prices . Herein, we compare the price of solar power against actual as well as forecasted price of power in Rajasthan
We can easily understand that as tariff for solar is decreasing starkly up till now, the scenario is completely the opposite for DISCOMs who are raising the power tariffs constantly to match up with rising debt; this increase in price per year is primarily targeted toward debt payoff and our DISCOMs have grossly failed there too.
Now take a look at the article that showed up in a leading Hindi daily where they claim that the Government is all set to increase the power tariffs
Another Article that appeared in financial express on 17th Aug claimed RVPN has dropped 7 out of 9 PPA owing to low demand as well as high debt burden; Rajasthan is a state that regularly resorts to load shedding in summer, also Rajasthan is one among 5 states that were blamed for the grid failure of Aug 2012 which affected the Northern grid and sent the northern part of country into darkness for hours keeping in mind these facts we would all agree that the claims regarding low demand are all hoax, so the only other logical reason that loom large is Debt.
Something worth sharing is that official website of RVUN( Rajasthan Vidhyut Utpadan Nigam) claims that total installed capacity is just 5357 MW as of today; interestingly during August 2014 the peak demand was more than 10,000 MW.
Probability of such sharp decline in demand that it came down by 5 GW seems implausible, another interesting fact that I will like to remind here is that total PPAs signed initially out of which 7 were cancelled added up to just 1975 MW, here on I cannot fathom how DISCOMS plan to face three key problems
1. Meeting existential demand
2. Paying off debt
3. Keeping price in check
Now, apparently the debt burden on electricity companies is INR 80,000Crore and there doesn’t seem to be any other action plan apart from cutting down on power purchase expenses (and means load shedding) as well as raising the power tariffs.
Hence, what we faced last summer was just the tip of the iceberg i.e. the problems for industrial, commercial business and domestic consumers are just getting started and power cuts are going to get ever more prevalent and tariffs are going to sky rocket.
Hence, the Time is now to get smart, switch to Solar and Generate your Own Power.