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Electricity tariffs likely to be hiked as govt implements automatic pass-through model

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3 years ago

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Rising inflation has broken the back of the general public. From petrol and diesel to food items, everything is becoming expensive. Meanwhile, the public may once again get a major setback because along with the power generating companies in the country, the power distribution companies (discoms) are facing huge losses.

The power sector in the country is in bad shape. India imports coal on a large scale and coal is the main source of energy in the country. In such a situation, it is natural that when the price of fuel in the international market increases, the cost of power generation will also increase. After the incident of Coal Crisis, the Power Ministry has issued instructions regarding the automatic pass-through model.

Under the automatic pass-through model, if the fuel rate increases after the futures contract, there will be an additional burden on the government discoms. The discom will have to pay a higher price to the power plants than the initial contract. While this move will improve the financial condition of the power generating companies, as they will get more money, but with this decision of the government, the financial condition of the power distribution companies ie discoms can also worsen.

The work of a discom is the distribution of electricity and collecting money from the public in return. In such a situation, when the fuel rate increases, the discoms will have to pay a higher rate to the power generating companies to buy power. In such a situation, the discoms may pass the burden to the customers and raise the power tariffs.

While it will be difficult for the companies to hike the prices due to political pressure and public opposition, the discom may hike it under compulsion and its effect will be seen on the pockets of the general public.

After the incident of Coal Crisis, dozens of power plants in the country stopped functioning because they did not have coal to generate electricity. Private companies had to pay coal companies in advance. Due to lack of liquidity, they do not have the option of storage. In such a situation, the government had to take this decision.

Section 62(4) of the Electricity Act states that if there is a change in the rate of fuel, then the power tariff can be updated several times a year. At present also there are some states where this (fuel surcharge adjustment) model works.

It is worth noting that the automatic pass-through model will not be fully automatic. When there is any change in the contract rate, the approval of the State Commission will have to be taken. The Ministry of Power has issued instructions regarding the new model on November 9, while this information on its website has been updated on November 11

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What monkey fled with a bag containing evidence in it: Read full story

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2 years ago

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May 5, 2022

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The court, generally, considers a person who commit a crime and the one who destroys the evidence, as criminals in the eyes of law. But what if an animal destroys the evidence of a crime committed by a human.

In a peculiar incident in Rajasthan, a monkey fled away with the evidence collected by the police in a murder case. The stolen evidence included the murder weapon (a blood-stained knife).

The incident came to light when the police appeared before the court and they had to provide the evidence in the hearing.

The hearing was about the crime which took place in September 2016, in which a person named Shashikant Sharma died at a primary health center under Chandwaji police station. After the body was found, the deceased’s relatives blocked the Jaipur-Delhi highway, demanding an inquiry into the matter.

Following the investigation, the police had arrested Rahul Kandera and Mohanlal Kandera, residents of Chandwaji in relation to the murder. But, when the time came to produce the evidence related to the case, it was found that the police had no evidence with them because a monkey had stolen it from them.

In the court, the police said that the knife, which was the primary evidence, was also taken by the monkey. The cops informed that the evidence of the case was kept in a bag, which was being taken to the court.

The evidence bag contained the knife and 15 other important evidences. However, due to the lack of space in the malkhana, a bag full of evidence was kept under a tree, which led to the incident.

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