Power tariff up, but domestic consumers needn’t worry

Pratibha Chauhan

Tribune News Service

Shimla, May 5

The 3 per cent hike in power tariff (for all categories) will not impact 20.55 lakh domestic consumers as the government has made a provision of Rs 475-crore rollback subsidy for this category.

The Himachal Pradesh Electricity Regulatory Commission (HPERC) on Saturday issued the hiked power tariff for 2018-19, which will be effective from April 1, 2018, for 24.44 lakh total consumers of all categories.

The power tariff for domestic consumers has been enhanced from Rs 2.85 to Rs 3.30 per unit, but with the state government making a provision of Rs 475-crore rollback subsidy, the power charges will remain the same for the domestic consumers.

There will be a nominal increase in power charges for other categories like commercial, non-domestic, non-consumer and industry ranging from 5 paisa to 15 paisa per unit.

“The enhanced power tariff structure will help the Himachal Pradesh State Electricity Board to earn an estimated profit of Rs 6.74 crore with the revenue income being pegged at Rs 5,396 crore and expenditure approved for Rs 5389.26 crore,” said KL Gupta, Executive Director, HPSERC.

Since there is a revenue gap of Rs 138.00 crore for 2019, the commission has approved an overall tariff increase to meet the gap. The power hike will result in an increase in tariff by 5 paisa per unit for commercial, industry and non-domestic-non commercial categories and 15 paisa per unit for the drinking water pumping supply.

To encourage consumption of electricity at night, an increase in night time concession charges for industrial consumers has been made. There will be 10 per cent rebate on energy charges for excess consumption for existing industrial consumers, while the new industry will be charged 10 per cent less for three years. Heritage hotels and home stay units will be charged domestic rates, but 30 per cent higher than the net energy charges payable.

The HPERC has also approved a provisional amount of Rs 200 crore arrears liability accruing on account of the 7th Pay Commission against the total demand of Rs 672.18 crore made by HP State Electricity Board Limited. The HPSEBL had projected the annual revenue requirement of Rs 6954.71 crore for 2018-19, which includes true-up gaps of Rs 365.47 crore for 2016 and Rs 252.03 crore for 2017.