The proposal for yet another power tariff hike in Goa looms over the horizon, threatening to burden the common citizen with hefty bills. The Goa Electricity Department has proposed a 5.95 per cent tariff increase for the current financial year (2025-26), followed by subsequent increases in the next two years. Such hikes, which have now become almost an annual feature, raise questions about the department’s commitment to addressing the underlying issues in the power sector, which have remained unresolved despite repeated past assurances.
At the heart of the matter are issues that do not justify the hike, leave aside the argument of affordability. Firstly, the department’s failure to recover past dues. According to Power Minister Sudin Dhavalikar, the arrears owed by consumers have surged from Rs 716 crore in 2021-22 to a staggering Rs 1,082.6 crore as of September 2024. The persistent inability to recover these dues is indicative of systemic inefficiencies within the department. It is ironic that while the common man is charged more, a section of the corporate class is being let off. This point here is about filling the revenue gap. While the department has been giving hollow assurances, on the ground, the outstanding amounts have only been rising. The One Time Settlement schemes are a sham.
Secondly, the promises made regarding the quality of the power supply remain unfulfilled, adding insult to injury. Goa’s electricity infrastructure is plagued with issues, with many areas suffering from unreliable service characterized by frequent outages and subpar quality. Industry honchos have often expressed concern about this aspect. The repeated assurances from the department about improving service quality must translate into tangible outcomes.
The argument often presented by the government that Goa’s tariffs are comparatively lower than those in neighbouring states fails to hold water. Goa operates in a distinct economic and social landscape, and comparisons to neighbouring states should take into account local factors, including purchasing power and existing infrastructure challenges. Citizens should not be compelled to shoulder the failures of operational management.
Public sentiment has been steadily building against these hikes, as seen from the reactions of concerned stakeholders during previous tariff discussions. Such hikes should be accompanied by a corresponding benefit to the consumer in terms of service or quality of power. People get nothing, while they pay more.
The only way out of this situation could be by promoting solar systems. Goa’s ambitious target to install rooftop solar systems in 50% of its households within the next year is a huge positive, but such an ambition needs to be fuelled by intent and awareness. Despite offering subsidies, Goans have been slow to adopt residential solar power, with even the government admitting that the response has not been encouraging.
The government must take immediate and concrete steps to rectify the underlying issues in the power sector. A genuine commitment to recovering dues, holding corporate entities accountable, improving service quality and making the solar switch could alleviate the financial pressure on citizens while fostering trust in the government’s capacity to effect meaningful change.
The proposed power tariff hikes represent yet another challenge for Goan households grappling with rising living costs. The government must explore ways to alleviate the suffering of common citizens rather than adding to their financial burden.
