Kejriwal and Sheela Dixit need to understand the word INCENTIVE

Arvind Kejriwal and Sheela Dixit need to fully understand the meaning of the word INCENTIVE. Particularly after Delhi govt’s  today’s decision to roll back on power rates.

Lesson to Delhi CM Sheela Dixit: 

Electricity may be scarce resource, but you can’t fix power rates, to your liking. Telling the power consumers in Delhi that the moment they surpass the 200 unit limit, they will be charged at a higher rate for all the 200 and excess units, is quite illogical. What will be the incentive for those people, who although surpass the 200 unit limit, exceed only slightly. Ideally, 200 units must be charged at a lower rate and any units above at a higher rate. This will give power saving consumers an incentive. It’s quite unwise to treat power to something like mobile phone plan, where a heavy user gets the incentive. You can’t give incentive to a heavy power user, as electric power is a scarce resource.

Sanity has finally prevailed and today — Delhi Government announced that electricity, up to 200 Units will be charged at Rs. 3.7, 200-400 Units at Rs 5.5 and 400-600 Units at Rs. 6.5.

Lesson to Arvind Kejriwal: 

It’s wrong to point to the profit earned by power companies. You can demand the lowering of power rates; but you can’t say, ‘why the said company earned that much profit’. The reason is, if a company can’t maximise it’s profit, then for what incentive it’s in business.