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Budget 2012 – Be Ready For Increased Electricity Bills

At the time when the Govt. is fighting hard to control the Inflation and ever rising prices of consumer goods in India, it looks like one thing that is probably going to take a hit during the upcoming Budget 2012 is the Power Tariffs. Here is why?

The power distribution companies in India are already running at huge losses due to the subsidised electricity tariffs which we are billed on. The finances of these power distribution companies have already gone to the dogs with the current losses amounting close to a whopping Rs. 82,000 Crores.

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Powergrid - India's largest power distribution company

Although, the subsidised power tariffs are not just one reason to blame these losses, there is also other factors in play such as distribution losses. The power distribution losses in India amount to 30% of total power production and is one of the highest loss figures worldwide. Half of the total power distribution losses in India take place in the North-East Region and Bihar.

Owing to all these, the Power distribution companies are planning to increase general power tariffs by almost 33% in the next fiscal. Which means if you have been paying Rs. 2 per unit of electricity till now, after the increase you will have to pay Rs. 2.60 per unit of electricity. With this increase, not only the domestic consumers, but also the large corporates will be hit big time. Tough time ahead 🙁

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