Montek for higher power tariffs during peak hours

New Delhi, July 13
Raising concerns about the health of power distribution utilities, Planning Commission Deputy Chairman Montek Singh Ahluwalia today suggested introduction of different electricity tariffs for peak and off-peak hours.

Peak period refers to the time when electricity is high compared to ordinary time

Power distribution companies in the country are estimated to have incurred a staggering loss of about Rs 70,000 crore in the last fiscal and the amount is expected to be as much as Rs 1,16,000 crore by 2014-15.

Speaking at the power ministers conference on distribution reforms here, he said it is easy to have a "time of the day tariff", where the rate is slightly higher for the peak period.

"The real issue is the difference between peak and non-peak is sufficiently large to actually encourage a switch.

That probably requires higher tariffs during peak period and may be even lower tariffs during non-peak periods," he said. Peak period generally refers to the time when electricity is high compared to ordinary time.

Power Secretary P Uma Shankar noted that electricity distribution losses are expected to reach as much as Rs 1,16,000 crore by 2014-15. — PTI