This story is from December 31, 2002

Caught napping on cross-subsidy

Caught napping on cross-subsidy
KOLKATA: The West Bengal governmentfaltered thrice when it could have acted decisively to retain cross-subsidy inpower tariff. Its current plan to move the high court against the WestBengal Electricity Regulatory Commission order on removing cross-subsidy in theCESC tariff structure is "too little, too late" a measure, sayexperts."Now that the Supreme Court has given a ruling, the case can onlybe sorted out by the apex court itself," a senior power department official saidhere on Wednesday. The government could have intervened on at least threeoccasions before subsidy was finally withdrawn."It should have been aparty to the case when the WBERC moved the Supreme Court against the high courtruling on CESC tariff last May. This was necessary as the existence of theCommission, a creation of the state government, was called into question by thehigh court," the official said.The government could also have become aparty to the case when the All Bengal Electricity Consumers'' Association movedthe SC seeking a clarification of its October 3 order that cross-subsidy beremoved. "The government should have joined the ABECA in the public interest,"the official said.Government sources said since the ABECA has the tacitbacking of the SUCI, the Left Front did not want to fall in a politicallyembarrassing position by joining the case.
However, even after the SC dismissedthe petition, there was still a last door open. "The government couldstill have issued directives to the Commission as per provisions of Section 39(2) of the ERC Act," the official said. As the situation stands now, the issuehas no hope for a speedy solution."The courts are likely to reopen in thefirst week of January. It is only then that the case will be filed," theofficial said. Even then, things will take longer. "Whoever loses in thehigh court will go to the Supreme Court. There is little possibility of theissue being sorted out before another five-six months," the official said. Thereis a strong feeling among government officials that even the WBERC cannot begiven a clean chit. "The Supreme Court, in no part in its order, hasspecifically said cross-subsidy should be removed at one stroke. ERCs in MadhyaPradesh and UP have passed orders after the Supreme Court''s judgement on CESC,and they are progressing towards its removal in phases," the officialsaid.

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