Oped: Farmers and Electricity Amendment Bill 2020, Dec 11, 2020,

Posted On : March 04, 2021

For too long farmers have been ridiculed for getting “free electricity” and politicians blamed for giving free electricity, in exchange of votes. The truth is that, for cultivation, the farmer wants water, not electricity? In 1965, Dr. K.L. Rao wrote “It is impractical to expect the farmerto pay the full cost of electricity. In any case, how is the cost of electricity supplied to the tube wells be computed? There is no understandable reason, for not subsidizing irrigation from underground water. Surface water is beinghighly subsidised. What is recovered, as water charges, amounts only to half or less of the interest on investment” Your demand should be “I will pay for electricity at rates that would equalize the cost of water under boththe systems of irrigation – canal including lift irrigation and farmer-owned borewell irrigation”How does Electricity Bill 2020, affect farmers ?Some of the provisions of the Bill are removal of cross-subsidies and subsidies Farmers to pay the cost to serve and subsidy will be sent to you by Direct cash transfer Since Independence, commercial organisations like industry, railways etc. have paid higher than the cost to serve and farmers have paid less. This way, the Discoms did not make a loss. This was called cross-subsidy.Obviously, if this is removed, every consumer would pay the same rate.The Bill requires that you first pay the same rate as big industries. And then at a later date, you will be reimbursed, through direct cash transfer. Nointerest would be payable for any delay in reimbursement, whereas at present the Discoma pays the consumersinterest on the security deposit at the rate of 1% more than the bank rates. Further, it is the owner of the land, andnot the actual tiller, who would get the subsidy.Besides an obvious question – why should I first pay more and then you pay me back.Privatisation being forced even without the Electricity Bill 2020 being enacted.Since electricity can only be obtained from one source, the private monopoly will replace the public monopoly. In thecase of a public monopoly, owned by the Government, the ordinary consumer has several instruments under yourcontrol. As a voter, he elects the legislature and the Government. There is the Central and State Audit of Accounts, the Right to Information, etc. In a private monopoly, there is only the regulatory commission where the consumerhas access but not the ability to participate and challenge the powerful corporations.Another myth that is circulated is, that like the mobile phone the consumer can get better service by changing the mobile phone company. In the case of electricity, eighty percent of the cost of power is on account of generation.Discoms deal with only 20 % of the cost of electricity. Can the tail will wag the dog?This form of privatisation is a political project. When infrastructure likepower, electricity, etc are is in the hand of just a few corporates, they will decide how the economy is to be a manager and who will manage the economy.