Vishal Jolly Raises Alarm Over Proposed Electricity Tariff Hike in Andaman and Nicobar Islands

Tarun Karthick

Port Blair, 27 January 2024

In a significant development, Mr. Vishal Jolly, National Executive Member of the Bharatiya Janata Party (BJP) and Former State President BJP-ANI, has lodged a formal objection with the Joint Electricity Regulatory Commission for the State of Goa and Union Territories (JERC). His submission, made expresses serious concerns and strong objections regarding the proposed tariff hike outlined in Petition No. 119/2024 before the commission.

The BJP leader’s communication aims to bring to the commission’s attention critical considerations and potential adverse implications associated with the suggested modifications to the electricity tariff structure in the Andaman and Nicobar Islands.

The proposed tariff adjustments, if approved, would lead to substantial increases for various consumer categories, placing a disproportionate burden on domestic users, commercial enterprises, hotels, and industries. The proposed changes include:

– Domestic users (201-500 units): Rs. 8.50/Kwh to Rs. 12.80/Kwh

– Domestic users (above 501 units): Rs. 10.25/Kwh to Rs. 15.40/Kwh

– Industries: Rs. 12.25/Kwh to Rs. 18.40/Kwh

– Commercial units: Rs. 16.50/Kwh to Rs. 24.80/Kwh

– Hotels, resorts, and restaurants: Rs. 15.50/Kwh to Rs. 23.30/Kwh

Mr. Jolly contends that these proposed increases pose serious challenges to the financial viability of various sectors, particularly considering the unique geographical and demographic challenges faced by the Andaman and Nicobar Islands.

Highlighting the scattered nature of the islands and the lack of a centralized power station or grid, Mr. Jolly emphasized the need for a thorough evaluation of the proposed tariff. The BJP leader underscored the adverse impact on the tourism sector, a crucial contributor to the islands’ economy, which is already reeling from the effects of the COVID-19 pandemic.

With the tourism sector on the path to recovery, the proposed tariff hike threatens to impose an additional burden on the struggling hotel industry, potentially leading to more closures and job losses. The BJP leader urged the commission to consider these challenges.

Mr. Jolly also called attention to the dependence on small private diesel generators by the Electricity Department, leading to increased power purchase costs, which are then passed on to consumers. He stressed the importance of exploring and investing in innovative green energy alternatives, drawing inspiration from similar island nations.

Mr. Vishal Jolly urged the commission to reassess the proposed tariff hike in consideration of the unique challenges faced by the Andaman and Nicobar Islands, ensuring that consumers are not subjected to sudden and excessive burdens.