On 29th August 2024, the Minister of Power & Parliamentary Affairs, KG Kenye, initiated a discussion on “Power Sector Reforms by Reviewing the Communitisation of Electricity Management in Urban and Rural Areas under the National Communitisation of Public Institutions & Services Act, 2002 (Act No. 2 of 2002) – Sensitization and Awareness.”
Kenye highlighted that the power sector is one of the main backbones of the state’s economy, functioning as a commercial organization/department of the state, responsible for delivering electricity as an essential public service. Unlike other service sectors such as medical, education, and health engineering, he emphasized that it is crucial to recoup operating costs/expenditures from consumers to ensure stable, quality, and affordable electricity, as well as energy security, to leverage overall socio-economic growth and infrastructural development.
Kenye stated that the proposed reforms were presented before the House for the sensitization and awareness of its members and the public, including civil societies, regarding the proposed changes/amendments to the communitisation of electricity management model rules. He also discussed reviewing the roles of GBs, ward/colony councils to usher in growth in the state.
MLA Nuklutoshi, participating in the discussion, supported Minister KG Kenye by emphasizing the importance of electricity for everyone and urging its judicious use. He noted that the state has faced significant financial losses for years due to poor electricity management, negatively affecting its financial health. Nuklutoshi urged consumers to be mindful of their electricity usage and to dispel the misconception that government resources are free. He pointed out that the poor implementation of power sector reforms and the misuse of electricity have contributed to inadequate revenue generation. He advocated for the adoption of smart metering as a viable solution for improving the power sector, stating that the communitisation of electricity has been unsuccessful, leading to government losses. He also mentioned that increased access to modern electronics in rural areas has resulted in excessive electricity consumption, further exacerbating revenue loss under the current communitisation policy.
MLA Picto Shohe, supporting the discussion on Power Sector Reforms, stated that the Power Department is striving to provide power supply to homes and streets in both rural and urban areas, but due to manpower shortages, it is difficult to monitor power theft and direct hooking, leading to revenue loss. He called for stern measures against culprits and urged the government to implement smart prepaid meters in urban areas with the involvement of stakeholders.
Advisor for Tribal Affairs and Election, Tovihoto Ayemi, also supported the discussion, acknowledging the complexities and technical challenges of revenue collection for the Power Department. He noted that in the past, the government relied on schemes offering free electricity due to significant spending on power purchases. He called on the House to educate people on the importance of paying for electricity consumed and supported the installation of prepaid meters.
MLA Achumbemo Kikon supported the “Power Sector Reforms of Communitisation of Electricity Management in Urban and Rural Areas under the Nagaland Communitisation of Public Institutions & Services Act, 2002.”
Advisor for Industries & Commerce, Hekani Jakhalu, endorsed KG Kenye’s statements, highlighting the interconnection between the Industries & Commerce and Power Departments. She advocated for adopting interventions such as prepaid and smart meters in homes, transformers, and substations to address manpower shortages, inaccurate billing, and revenue collection. These measures, she argued, would provide accurate real-time information to the department, improve power supply, and enhance load management. Jakhalu also emphasized that the department is essential for the state’s economy and that the new power reforms are crucial for revenue generation.
Advisor for Information Technology & Communication, Economics & Statistics, Evaluation, Sethrongkyu, pointed out that the Act empowers the community and delegates powers and functions from the State Government to Local Authorities, allowing community participation in managing local public utilities, public services, and other state government activities, including education, water supply, roads, power, and welfare and development schemes.
He addressed the common misconception that it is the government’s obligation to provide free or subsidized power tariffs, highlighting that electricity is often stolen. Sethrongkyu urged members to recognize that the Department of Power is a revenue-earning department, and the electricity supplied to consumers must be sold like any other essential commodity in the market. The department must recover costs from every consumer as electricity is not free, either for the government or consumers.
He also explained that the government has to purchase power to supply to consumers. However, with the Communitisation of Electricity in Nagaland, about 90% of the villages covered under the Act are billed at an average monthly charge, and in some cases, the bare minimum charge, rather than based on actual consumption. About 10% are billed according to actual consumption/meter readings.
Sethrongkyu suggested reviewing the Communitisation of Electricity Management in Rural and Urban areas under the Act.
Rio remarks on power reforms: Urges action to address revenue loss
Chief Minister and Leader of the House, Neiphiu Rio, thanked the Minister in charge of Power and the participants who took part in the discussion on matters of urgent public importance under Rule 50, pertaining to “Power Sector Reforms by Reviewing Communitization of Electricity Management in Urban and Rural Areas under the Nagaland Communitization of Public Institution & Services Act 2002 (Act No. 2 of 2002) – Sensitization and Awareness thereof.”
He expressed his appreciation for the opinions and suggestions given on the power sector and emphasized the urgent need for reform. He mentioned that the power sector has been incurring an annual revenue loss of more than 50% of its total revenue collection. Therefore, he opined that this sector urgently needs a review, citing the current trend of increased power demand and revenue loss due to the hasty implementation of Communitization at the grassroots level.
He stated that the installation of 100% smart pre-metering is a challenge in our context due to resistance from CSOs. However, he emphasized that Town Council elected members and the government should take appropriate action against non-compliance. He also mentioned that the Cabinet has already decided to introduce compulsory metering in urban areas and their surroundings. In rural areas, he urged churches to take the lead in sensitizing and disseminating the right information to the people. He stressed that this issue needs serious discussion and that everyone should be responsible for paying their electricity bills.
(With DIPR inputs)