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Are 100 Units of free electricity really profitable?
Posted on: 07/Jun/2016 9:19:53 AM
One of the election promises given by the newly formed government is that 100 units of electrical energy would be given free to every house.
It is advisable to compare the prevailing electricity tariff and the future tariff when 100 units would be free.
Under the new tariff, the customers who consumed between 120 units and 200 units will save Rs. 150/- once in 2 months. The customers who consume between 250 and 500 units will save Rs. 200/- once in 2 months.
The customers who consume more than 500 units will save Rs. 340/- once in 2 months.
As the subsidy already provided by the state government has not been affected, the margin of saving is as above.
If the state government reduced the prevailing subsidy, then there would not be any saving by getting 100 free units of electrical energy. If the subsidy is not affected and free 100 units of electrical energy are offered, the public would benefit with some savings.
