Instead of 'giving power to levy taxes' or 'accusing provinces of doing nothing', the Parliament can pass a law rationalizing electricity tariff to fixed charge basis, based on the square footage of the residence. In one go, all problems are solved. Just adjust the tariff (Say, 10 Rupees per month per square foot of habitable area) to match the cost of production and distribution. That way, there is no need even for residential metering. That is how I pay my bill for internet. I pay about $60 a month for 70 Megabit per second line. My provider does not measure how many bits I receive. Same with my garbage collection and wastewater service. Flat rate of $45 per month (for each service) irrespective of how much trash or wastewater I put out. Even our post office uses a flat rate envelope. Put anything in it and send it anywhere in the country for $10. Like this:
Bad idea- you encourage consumption this way.Instead of 'giving power to levy taxes' or 'accusing provinces of doing nothing', the Parliament can pass a law rationalizing electricity tariff to fixed charge basis, based on the square footage of the residence. In one go, all problems are solved. Just adjust the tariff (Say, 10 Rupees per month per square foot of habitable area) to match the cost of production and distribution. That way, there is no need even for residential metering. That is how I pay my bill for internet. I pay about $60 a month for 70 Megabit per second line. My provider does not measure how many bits I receive. Same with my garbage collection and wastewater service. Flat rate of $45 per month (for each service) irrespective of how much trash or wastewater I put out. Even our post office uses a flat rate envelope. Put anything in it and send it anywhere in the country for $10. Like this:
The problem with complete privatization is cherry picking. Private company will not like to deal with poor people's problem and will simply turn off power quickly for nonpayment and make it very hard to get connection again based on past history of delinquency. Compare USPS with FedEx. USPS gives guaranteed universal access at affordable rates. FedEx will cut deals with likes of Amazon and Walmart and quote $30 to you to ship a package. Have you ever wondered how Walmart can ship an item costing $35 for free while it costs you $25 to ship the item? Because Walmart pays $5 to FedEx/UPS.
Capitalism is brutal but as a principle, it’s a good idea. If you are poor and can’t afford to pay for a lot of electricity, you ought not to consume that much. It’s harsh but it seems right, doesn’t it?
The smart governance is being able to distinguish genuine need from criminality. A poor household with a few lightbulbs and may be a TV and computer is unlikely to be engaged in systematic theft. By charging a flat rate based on square footage, you are subsidizing them while providing a basic service. It can even be slabbed: First 500 sqft will be 1 rupee per sqft per month, next 500 sqft will be 10 rupees per sqft per month. After 1,000 sqft, it will be 100 rupees per sqft per month. After 10,000 sqft, it will be 1,000 rupees per sqft per month etc.,
Problem is not measurement; everybody and his uncle knows how many kilowatt-hours have flown in a circuit but collecting it is the challenge.
Yeah but you have to invest it said pylons and have the political capital to go through with punishing whoever is guilty.
it shouldn’t happen at the level of making market manipulations. Set the market price. It should be the same for every single person. If someone is poor, the govt can give him some additional income. Manipulating the market has never worked under any circumstance. Subsidies, even when targeted to poor people, do not work.
