Marginal hike in power rates
Navneet Sharma [email protected]
CHANDIGARH:

WELCOME MOVE The overall hike works out to 0.5% and is estimated to generate additional revenue of R38 crore
Power consumers in Haryana will heave a sigh of relief. The reason: they will not have to pay for the inefficiencies in power distribution companies with another hefty hike in power rate again this year.

Despite a huge accumulated revenue gap of over Rs 3,076 crore, the Haryana Electricity Regulatory Commission (HERC) has marginally increased the power rates for consumers of domestic, nondomestic and industrial categories. The overall hike works out to 0.5% and is estimated to generate additional revenue of Rs 38 crore in the current year.
The revised rates will be applicable from June 1. The two state-owned distribution companies, Uttar Haryana Bijli Vitran Nigam (UHBVN) and Dakshin Haryana Bijli Vitran Nigam (DHBVN), which had projected a gap of roughly Rs 5,500 crore in their annual revenue requirement filings, have been directed to meet the uncovered revenue deficit through borrowings from approved institutions.
The domestic supply consumers, who were hit hard by a huge jump in tariff in October 2010, will have to pay slightly more now, depending on their consumption. While there has been no change in the rates for consumption up to 40 units per month, power tariff for monthly consumption between 41 units and 300 units ­ more than 80% domestic consumers are covered in the first two slabs ­ is up by 5 paise per unit.

The power rates for monthly consumption between 301 and 500 units are up by 10 paise per unit, while 500 units and above by 9 paise per unit, according to the distribution and retail supply ARR and tariff order issued by HERC on Friday.

In the non-domestic supply (NDS) consumer (shops, commercial establishments, schools, hospitals, etc) category also, there is an increase of 10 paise per unit in energy charges
However, the monthly minimum charges (MMC) levied on NDS consumers with connected load up to 20 kW have been reduced from the existing Rs 240 per kW.
The MMC will be Rs 180 per kW for consumers with connected load up to 5 kW and Rs 160 per kW above 5kW. As a significant number of NDS consumers are billed on the basis of MMC, there was resentment among traders, shopkeepers etc on account of increase in MMC last year.

The fixed charges for NDS consumers with connected load above 20 kW have also been reduced from Rs 130 per kW to Rs 115 per kW. Similarly, the LT industry (up to 50 kW) will have to pay 10 paise more per unit.
There will be no change in the electricity rates for metered and un-metered supply to agriculture tube-wells due to power subsidy committed by the government. While the state government had budgeted subsidy of Rs 3,317 crore for supply to agriculture sector during the current year, the subsidy requirement has been estimated at Rs 3,421 crore.

Power rates for supply to big industries, railways, bulk supply lift irrigation, MITC have also not been revised. “The commission does not intend to comprehensively revisit the tariff which was adjusted only recently until full year impact of introduction of two-part tariff design and new rate slabs and adjustment carried out in energy charges and MMC are known,“ HERC chairman Bhaskar Chatterjee said.

In October 2010, power rates had gone up by a whopping 20% in the state. The increase, which ranged from 12% to 26% for different categories, had led to widespread resentment among the consumers. The industrial associations had even challenged the increase before the Appellate Tribunal for Electricity