The proposed hike in electricity tariffs by the Electricity Department of the Andaman & Nicobar Administration has triggered strong opposition from various quarters, with growing concern among residents and the business community over the already high cost of power in the Islands.
Consumers across South Andaman have long struggled with steep electricity bills, often considered among the highest in any Union Territory. Unlike mainland cities such as Delhi or even remote regions like Ladakh, islanders pay substantially more per unit despite regular power cuts, fluctuating voltage, and limited supply reliability. For many middle-class households, monthly power bills frequently cross â‚ą3,000 even with modest usage, and small commercial units report being billed disproportionately during peak tourist seasons.
The latest proposal, which seeks to increase tariffs further, has reignited debate over affordability and governance. Hoteliers, small shop owners, and even home-based entrepreneurs are expressing anxiety about the downstream effects of the hike, especially when compounded by fuel costs and limited alternatives to grid power.
Among the political voices speaking out against the proposal is TSG Bhasker, Chairman of the Andaman & Nicobar Territorial Congress Committee (ANTCC), who has formally opposed the revision. In a letter to the Superintending Engineer (Tech), Bhasker called the move “shocking” and said it penalizes consumers for the department’s inefficiencies.
In his communication, Bhasker pointed out that despite the administration’s promotion of the Islands as a tourism hub, rising utility costs would directly impact the sector’s viability. “Higher power tariffs will severely affect the competitiveness of our tourism sector,” he noted, warning that this could result in hotel closures and job losses at a time when the sector is still recovering post-pandemic.
What has added to public frustration is the perception of inadequate consultation. Stakeholders, including business associations and resident welfare groups, were reportedly not engaged prior to the circulation of the proposed tariff changes. The absence of a participatory framework in crucial cost-related decisions has drawn criticism from civic groups and local leaders alike.
Many believe that systemic inefficiencies within the Electricity Department, such as transmission losses, lack of automation, and absence of renewable integration, are being offset by charging more from end-users. “We are paying a mainland price for substandard service,” remarked a hotel owner in Sri Vijaya Puram, who said electricity now accounts for nearly 20% of their operational budget.
Islanders have also raised questions about the Department’s long-term planning. While there have been announcements of upgrading infrastructure and commissioning new plants, the benefits of such investments are yet to be felt on the ground. Consumers say outages remain frequent, and many areas continue to depend on diesel generators for backup.
TSG Bhasker, while raising the issue with the Chief Secretary and Secretary (Power), also forwarded his objections to the Andaman Nicobar Chamber of Commerce & Industry, urging them to press for withdrawal of the proposal. He stressed that tariff revision must be preceded by concrete service improvements and transparent public dialogue.
As residents await clarity, what remains certain is that the rising cost of electricity has once again become a flashpoint in the broader debate about equitable development and service delivery in the Islands.
