Finally our government has instituted Electricity Regulatory Commission (ERC) in every state to control a monopoly as a result of consumer organizations and the World Bank. It is true that price for power has not come down yet. At least CHESCORP cannot unilaterally increase price as they used to do. The whole process of revising tariff has become more transparent today. As ERCs get more experience of analyzing power companies and also consumer protection NGOs like MGP develop greater professional expertise, consumer interests will be more protected. We urgently need such regulatory bodies for such monopolies as Water supply, railways, Bus Transportation (when government does not allow private bus companies) etc. There is absolutely no meaningful regulation to control the Cable TV industry today. It is true that by allowing free market forces, consumers were able to get cable TV connection in the shortest possible time. At the same time, Cable TV industry also has managed to extract obscene profits from consumers through their monopoly power. They can demand any amount of deposit while giving fresh connections and charge monthly rents in an arbitrary manner. Often they do not give receipts. Though consumer can file complaints against such wrong doings in consumer courts, it may not be advisable. These consumer courts are acting today like civil courts with giving adjournments at the drop of a hat. Also cable TV operators may take grudge against consumers for filing cases. There are three strategies consumers can adapt to force Cable TV operators to be consumer-friendly. MGP has been asking consumers to form their own company in their area and to give connection. Capital required to start a company is about Rs 4.0 lakhs. However there is a hitch. The current cable operator may create problem by cutting cables of the new company or such high handed mafia type activity. Also Multi-System Operators who supply signals may not treat the new entrant fairly. Despite such odds, one can start a new company and give competition. There have been such successful instances of competition in areas like Yadavagiri. The second strategy is to force the government to bring about a comprehensive regulation to monitor cable TV industry and to control tariffs. This requires a strong consumer movement. Do we have such a strong consumer movement in India today? The third strategy is to boycott the cable operator en masse whenever he behaves in an arbitrary manner with the consumers. This again requires a strong consumer awareness. Do we have such consumer activism in Mysore? If we cannot implement any of the above three strategies, consumers will continue to suffer under the monopoly power of cable operators till it becomes totally unbearable resulting in unrest. Press Release Dr. Bhamy V. Shenoy, Mysore Grahakara Parishat OIL PRICE INCREASE AND FAULTY AUTORICKSHAW METERS (Sep 10, 2005)
During the last 12 months, pump prices for petrol have gone up by about Rs 7.00 per liter to reflect the huge increase in international crude oil price of more than 50%. Petrol price increase is about an increase of 20% and they have been revised at least five times. But autorickshaw fares have not gone up to reflect the cost of operating them. As a result the auto meter tampering which was already extensive has now become universal. There is an elaborate process to fix the meter rates taking into consideration the interests of different stakeholders. In this case the two main stakeholders who are directly affected are autorickshaw owners/drivers and the public who use them. MGP has not done any scientific study to find out what percentage of autos have accurate meters. But based on anecdotal observation, 90% of meters are not accurate and they overcharge as much as 30%. In one respect auto drivers are justified in overcharging. When auto fares are not revised to reflect higher fuel costs, they cannot afford to subsidise the public. On the other hand, tampering with the meter is illegal. But why have the authorities (RTO, Police and the Department of Legal Metrology) failed to find a solution? The process of fixing the auto rates is not simple. Many factors (fuel cost, capital cost, depreciation, maintenance cost, average passenger kilometers, average idle kilometers, etc.) have to be considered. Also a significant percentage of autos have switched to LPG (The legality of using LPG for autos is a separate issue) and the price of LPG, unlike petrol, has gone up by only about 8% during the last 12 months. Many autos also use PDS kerosene illegally. Since there is multiple pricing for the same commodities, blackmarketing in LPG and kerosene is rampant. Thus it would be difficult to compute the actual fuel cost for operating autos. Despite all these obvious problems, MGP requests the RTO to find a solution soon. They should appoint a committee of economists, bureaucrats, representatives of auto drivers unions, consumer activists and police to solve the problem of tampered meters and fair auto rates at the earliest. SAYING GOODBYE TO 2005 and WELCOMING 2006 Dr. Bhamy V. Shenoy, Convener, MGP As 2005 comes to an end, and we get ready to welcome 2006, all concerned and informed residents of Mysore need to reflect on the state of our beloved city. It is only we working together can save the city from further deterioration. Mysore Grahakara Parishat started the