Nagaland chief minister, Neiphiu Rio, has expressed grave concerns over the substantial annual revenue loss of approximately Rs. 300 crore incurred by the state’s power department.
Speaking during a discussion on power sector reforms under Rule-50, Rio highlighted the urgent need for overhauling the state’s electricity management systems, particularly in urban and rural areas.
Rio attributed these financial losses to several critical factors, including chronic manpower shortages, under billing, and rampant power theft. Rio noted that the power department is grappling with a severe shortage of meter readers and operations and maintenance (O&M) staff. This shortage has led to significant under billing, with nearly 50% of monthly billing being based on minimum average estimates due to inaccurate or non-existent meter readings.
The issue is further exacerbated by the practice of “communitisation” of electricity management in villages. This concept birthed during 2002 involves a system, where single-point metering is prevalent and consumer metering is virtually non-existent. This has led to many village consumers being billed on a minimum average basis, contributing to the massive revenue losses.
Rio also raised concerns about the increasing power demand in both urban and rural areas, driven by rapid urbanization. He warned that if the current trend continues, communitised villages could become major contributors to the state’s growing revenue losses.
Rio emphasized the urgent need for reforms in the power sector to ensure the delivery of quality and uninterrupted power supply to both domestic and industrial consumers. However, he acknowledged the challenges the department faces, particularly in the installation of smart meters in Dimapur, the state’s commercial hub. Resistance from various public NGOs, GB unions, and ward chairmen has hindered progress in this area, he noted.
Further complicating the situation is the Central Government’s notification dated February 26, 2021, which made the installation of prepaid meters mandatory. Rio expressed concern that achieving 100% smart metering coverage across the state under the Revamped Distribution Sector Scheme (RDSS) has become a significant challenge due to local resistance.
He stressed that smart prepaid metering is a condition for the release of funds for infrastructure development under the RDSS, making its implementation crucial for securing much-needed Central Government funds for Nagaland’s power sector.
Rio also spoke on the role of GBs, ward chairmen, and village councils in assisting the government in delivering public services and implementing various schemes. He however criticised their opposition to government programmes, particularly from the GBs, the latter of who he said, were appointed by the government. Rio described such resistance as “insubordination” and inappropriate, as it undermined efforts to improve public service delivery.
During the discussion, Power minister KG Kenye underscored the importance of the power sector as a crucial backbone of Nagaland’s economy. He emphasized that, unlike other service sectors such as healthcare and education, the power sector must recover its operating costs from consumers to ensure the provision of stable, quality, and affordable electricity. Kenye proposed several reform measures, including amendments to the communitisation of electricity management model rules and a review of the roles of GBs, ward, and colony councils, aimed at driving growth in the state.
NPP member Nuklutoshi highlighted the negative impact of consumer complacency on the state’s power sector, emphasizing the need for a change in mindset regarding government services and loans. He pointed out that Dimapur, which consumes 35% of the state’s energy, contributes to 50% of revenue loss due to issues like power misuse, meter tampering, and underbilling.
NCP member Er. Picto Shohe called for a review of communitisation and the implementation of smart prepaid metering, particularly in urban areas, to enhance revenue collection while BJP member Sethrongknyu urged the state to create awareness and ensure efficient power distribution by implementing 100% smart metering in compliance with national guidelines.
BJP member and adviser Tribal Affairs Tovihoto Ayemi highlighted the complex challenges facing Nagaland’s power sector, noting the heavy financial burden it places on the state. He praised past reforms, such as the installation of prepaid meters, as important steps forward but stressed the urgent need for further changes to ensure stable electricity and drive economic growth.
Ayemi called on his fellow legislators to support these crucial reforms, emphasizing their importance for securing a sustainable energy future for Nagaland. The discussion culminated in a consensus among legislators on the need for urgent power sector reforms to ensure stable electricity and foster economic growth in Nagaland.