Steep hike in power tariff
BPL families, agri sector spared
Rakesh Lohumi
Tribune News Service

Shimla, June 10
While sparing below poverty line (BPL) families, small industries and agriculture sector, the State Electricity Regulatory Commission today ordered a steep hike in energy charges across the board affecting an increase ranging from 30 paise to 55 paise per unit for various categories, including domestic consumers.

The tariff for BPL remains unchanged at Rs 1.80 per unit (70 paise after subsidy) for 50 units per month. However, for the domestic category the tariff has been raised by 30 paise per unit for all three slabs. For monthly consumption up to 150 units the tariff has been increased from 70 paise to Re 1 per unit and for 151 units and above from Rs 1.70 to Rs 2 per unit, presuming that the government continues with the same level of subsidy. The third slab of 300 units and above has been scrapped. The new rates for the two slabs without subsidy are Rs 2.20 and Rs 3.45 per unit. The rate for pre-paid meter consumer has been increased to Rs 2.20 per unit (Re 1 per unit after subsidy).

The government will have to provide Rs 163 crore to maintain subsidy at the exiting level. Accordingly, the average cost of supply has shot up from Rs 3.60 per unit to Rs 4.42 per unit, an increase of about 23 per cent. The aggregate revenue requirement (ARR) of the state power utility has been assessed at Rs 2,687.84 crore, up from last year’s Rs 2341 crore.

The tariff for non-domestic non-commercial category has been increased by 40 paise from Rs 4.05 to Rs 4.45 per unit and for commercial category Rs 4.30 to Rs 4.60 per unit. The rate of agriculture power has been left unchanged at Rs 1.80 per unit (50 paise after subsidy). Street light charges have been raised from Rs 3.60 to Rs 4 per unit. The tariff for small industrial category remains unchanged at Rs 3.70 per unit. The tariff for extra high-tension (EHT) supply has been revised from Rs 2.35 to Rs 2.80 per unit and for high-tension (HT) from Rs 2.20 to 2.60 per unit. However, the overall impact after taking into account peak charges will be 55 paise per unit.

Announcing the tariff order for 2010-11 here today, chairman of the commission Yogesh Khanna said there was no option but to increase tariffs in view of the very steep increase in power purchase costs coupled with diminishing quantum of surplus power for sale outside the state. Further, employee cost had gone up substantially due to implementation of revised pay scales with initial impact of Rs 168.82 crore which included interim relief, arrears, terminal benefits and actual outgo in pay for the current year. Although the due instalment of dearness allowance had not been announced, a provision had been made in the ARR.

The new tariff, which will be effective from April 1, 2010, and remain in force up to March 31, 2011, is estimated to fetch additional revenue of Rs 255.66 crore. The revenue from sale of power has been assessed at Rs 2,338.33 crore and sale outside the state at Rs 193.70 crore. The net surplus of 2008-09 is Rs 186.38 crore. Thus, 2010-11 will have a net surplus of Rs 30.57 crore, to be utilised by the board to offset any unforeseen expenditure.