Hike in energy tariff draws flak

Ambika Sharma

Tribune News Service

Solan, May 30

The covert increase in the energy tariff of industrial consumers by way of hike in the demand charges has drawn flak from investors as it will hike the monthly energy bill by three to five per cent for medium and large category units.

The HP Electricity Regulatory Commission, in its tariff order issued on May 25, said in view of the persistent stagnation in growth in the industrial sector, no increase has been made in the energy charges. A hike has, however, been made in the demand charges by Rs 20, 50, and 75 per kVA per month for medium, large and EHT categories of industrial consumers.

“Since the industrial power tariff was dependent on energy and demand charges, any hike in either of these causes a corresponding hike in the monthly energy bill,” explained Rakesh Bansal, general secretary of the Parwanoo Industries Association.

He resenting the unprecedented hike ranging from three to five per cent and said the association had objected to any such increase in power tariff and objections had been filed before the Himachal Pradesh Electricity Regulatory Commission.

“The new electricity tariff will become applicable from April 1. The impact of the same is expected to be about 5 to 15 paise per unit depending on the usage and large category units will face hike of several lakhs on their monthly energy bills,” Bansal said.

It was interesting to note that while the state government has been patting its back for having frozen the power tariff for three years, this covert increase in the tariff has come as a surprise to the investors. The government had also highlighted its power freeze policy before the investors during its investor meets held last year to lure the investors. All such claims have fallen flat with the investors filing objections before the commission.

Bansal said the monthly energy bill of an electronic device manufacturing unit operating near Parwanoo would be hiked by at least Rs 2 lakh while an induction furnace which uses power as a major ingredient will face an increase of Rs 3.50 lakh in its monthly energy bill.

Officials in the HP State Electricity Board Limited, however, said it was practically difficult to ensure no hike in tariff for the industry in view of the increasing expenditure and hence this marginal hike has been announced by the commission after taking into consideration the view points of the industry as well as the board by the commission.