Cross subsidy, the market modifier.

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This article is in line with what I was writing about in the last few months. 

We want the cross subsidy scrapped to make a uniform and simple tariff structure. And a market decided power price! Cross subsidy is not only a problem for the industries but also for generators. In addition it is also a grand modifier of the market and is a big problem for the Distribution Company. 

In Tamil there is a proverb which likens a person who goes through pain and enjoys it to a dog that is biting a dry bone. Since the bone is so dry and her own teeth so weak, the blood oozes out from the gums in her mouth and the dog things that it is the blood from the bone! Whereas the truth is that it is her own blood! In order to save the dog from bleeding if you try to take the bone from her, it will not allow you to take it either! You cannot save the dog easily. 

TANGEDCO and other Discoms in electricity business are more are less like that. They 'think' cross subsidy is good for them but in reality, they are killing themselves with cross subsidy. And anybody who tries to remove the cross subsidy is considered an enemy by the Distribution Companies. God save them! 

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