The purpose of this policy is to harmonize the entire electricity pricing system across the board, reducing the risk to the consumer. In the previous policy, the power distributors had enjoyed the absolute benefit of free electricity. The new guidelines however, have made changes to the manner the tariffs will be fixed for all users and have included a number of incentives to encourage new customers national interest waiver as well as encourage existing players to upgrade their systems.
The new policy has also ensured that power tariffs are fixed for three years, whereas the tariffs fixed in the past had been for six months or even less. This is expected to bring down the electricity prices in the long run, allowing it to be more competitive in the market. The introduction of the National Interest Rate (NIR) into the tariff structure is another step forward in this direction.
According to the Government of India, the introduction of the NIR into the pricing mechanism will allow the market to become more flexible and will also help in bringing down the cost of electricity. The NIR is a fixed rate that will be implemented until the release of the fourth QE report. By introducing the NIR, which is a floating rate, the costs of electricity will become more volatile and will become more costly, with the introduction of higher inflation. The introduction of a free electricity supply by the end of this calendar year will be a welcome move on the part of the Government of India and its decision to fix the electricity prices for the end of the current fiscal year is also a step forward in the right direction.
In the current scenario, there are three important dates. The first is the actual end of the 6th fiscal year (ending June 30th). The second is the first auction date for the EEGs (electrically powered vehicles), and the third is the final auction date for all the licenses (to make the electric vehicles) for producing electric vehicles in India. It is important to note that even on these dates, there are opportunities for consumers who want to buy their own electric vehicles. There are lots of government auctions which will be taking place at various places across the country at this time.
At the same time, consumers are advised not to rush into any purchase and should take their time to study the market before choosing the best deal. For instance, at the end of the month of October/ November, there will be another auction when the surplus margin of the auction will be released. At this time, there are chances for buyers to get generous discounts on the price of the cars. At the same time, as the prices are fixed for the entire duration, there is no room for haggling, and this is the best time to clinch a deal.
Besides, there are other benefits of purchasing cars at the auction site. When the auction is over, you can go back home, pack your vehicle and return to the auction site. This gives you the comfort of knowing that you have the car of your choice at very cheap prices. The reason for the government to keep the electricity prices so high is because it has to pay hefty taxes every time it sells a unit of gas or electricity. Since most of the vehicles use electricity, keeping the prices low helps them meet with their expenses.
There are many reasons why more number of people are getting attracted to these auctions. One is that they are also good to look at, which makes the pictures a very attractive sight. The sellers also display the cars in their show rooms and it looks very impressive, especially for those who want to own a brand new vehicle in India. During the auction, the owners are allowed only to look at the cars and give their immediate decision, but since more number of buyers are joining the bidding, the actual sale does not go on for a long time.
The Government of India is aware of the situation and has taken steps to prevent the price hike in electricity and gas. For all those who are not well informed, the auctions are actually the best time to buy the cheapest units. You can find the official website of the auction site, where you will also get the list of vehicles available for bidding. If you are in search of a brand new car, this is the place to start your search.
Published by Eliza Johnos