
The new Electricity Act is providing conclusive proof that electricity shortage is mainly due to distribution mismanagement. A steel unit in Maharashtra8217;s most power starved region, who advertised for long term power supply bids was surprised to get over 40 responses on the very first day. More interestingly, PSU giants such as NTPC, Power Trading Corporation PTC and a Himachal Pradesh based hydel power generator were willing to offer the best rates. While PTC offered a power trading agreement at the best rates, the wind and hydel power companies were offering a rate of well under Rs 2 per unit minus evacuation and wheeling charges. All this is good news for corporate India, it spells doom for government owned distribution utilities and could be disastrous for domestic consumers who do not have any bargaining clout with power generation companies.
Look, no bills!
The 8216;Oops8217; factor
The New York Times reports that a new 8216;economic spectre8217; of the new millennium is 8216;stealth inflation8217;. In an article titled: Checking your bill for a new charge called 8216;oops8217;, it says 8220;phone companies and just about anybody else who sends you a bill manages to extract more money from you without actually raising their rates8221; through newly concocted charges such as fees for 8216;handling8217;, 8216;restocking8217;, 8216;regulatory assessment8217; etc. Such fees are expected to generate 100 million for hotels this year, 2 billion for banks, 11 billion for credit-card companies 8212;and an average of 20 per cent extra on every phone bill. Phase II of such stealth inflation are the billing 8216;errors8217; that crop up in bills. Invariably, they over-bill customers because a majority of users don8217;t scrutinise statement and simply pay up, or because the need to 8216;turn into human pit bulls8217; to have errors rectified. The NYT says that such overbilling could be part of a deliberate policy because only a small percentage of users notice the errors or complain. Companies deny these charge most vehemently. But the theory is bound to strike a chord among Indian consumers using modern electronic banking, mobile phones, Internet services, on-line trading systems or even depository accounts who routinely complain about billing problems and various charges collected from them.
Speed-ing trouble
Do expensive fuels with additives going under brand names such as Speed really help your vehicle? Those who fork out extra money for what they think is better fuel are in for a surprise. The Honda Motor Company in India clearly tells users to use plain unleaded fuel, but consumer activist Veeresh Malik took the investigation to a conclusion. In response to his letter, Maruti Customer Care said that it has no specific test reports on the advantages/disadvantages of using fuel additives and that it would not be fair for it to comment on the issue. But it conclude 8212;8220;it is advisable to use the normal unleaded fuel in your vehicle8221;. The makers of the fuel additives vaguely say that all OEMs 8216;favour8217; branded fuels as it helps the vehicle. While this is not my experience or that of Malik, the company quoted Hyundai and an article on its website as an endorsement. But the article only seems to say that since normal fuel has impurities, it is better to use a branded fuel with additives. But Malik checked with the authorities and found that none have any quality standards specifications, nor are they required to declare the composition of their additives. A furious Malik wonders why oil companies are not forced to supply clean fuel and why they are allowed to market expensive alternatives and make more money.
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