Brace for 10% power shocker in Chandigarh

Dushyant Singh Pundir

Chandigarh, February 28

In a petition to the Joint Electricity Regulatory Commission (JERC), the UT Administration has proposed an average increase of 10.25% in electricity tariff for 2023-24.

The electricity wing of the UT Engineering Department has submitted that to avoid tariff shock to the consumers, an average increase of 10.25 per cent in the existing retail tariff has been proposed to meet the net revenue gap-surplus of Rs192crore requirement for 2023-24.

The department has submitted that the revision in the existing retail supply tariff has been proposed based on the provisions of the tariff design specified in the National Tariff Policy, 2016, and net revenue requirement proposed for 2023-24.

In the domestic category, the department has proposed an increase of 25p in the slab of 0-150 units and that of 151-400 units from Rs 2.75/kWh to Rs 3/kWh and Rs 4.25 to Rs 4.50, respectively. An increase of 35p proposed in the slab of 401 and above units and 50p for domestic high tension consumers. The department has also proposed to hike the fixed energy charges from Rs 15/kW/month to Rs 25.

In the commercial low tension (LT) category, the department has proposed to increase the tariff in the range of 25p to 50p for different stabs for both single and three-phase consumers and also to increase the fixed monthly charges from Rs 25/kW/ for single phase to Rs 40 and from Rs 100/kW for three phase to Rs 120 per kW.

For commercial high tension (HT), the fixed monthly charges have been proposed to increase from Rs 100 to Rs 120 and energy charges from Rs 4.50 per kWh to Rs 5/kWh.

For large, medium and small industries, the department has proposed a marginal hike of 10p/kWh, 20p/kWh and 20p/kWh, respectively.

For the agriculture sector, an increase of 20p has been proposed from Rs 2.60/kWh to 2.80/kWh. For public lighting system managed by the Municipal Corporation, street lights maintained or outsourced to an external agency, the department has proposed to increase the tariff from Rs 4.80/kWh to Rs 5/kWh and for advertisement/neon boards installed on commercial establishments and charged under the commercial tariff, it has been proposed to increase the tariff from Rs 6.40/kWh to Rs 6.60/kWh. With the implementation of the Electric Vehicle Policy, the department has also proposed to increase the tariff of EV charging station from the existing Rs 3.60/kWh to Rs 3.80/kWh.

The department has submitted that the proposed tariff revision would be able to commensurate the much-needed revenue requirement for the ensuing year. Further, with improvement of efficiency parameters and strong recovery of energy sales anticipated in the ensuing years, the balance revenue requirement will suitably be met for 2023-24.

The department humbly requested the commission that the revised retail supply tariff schedule as submitted may kindly be approved for 2023-24.

In 2022-23, the commission had approved an increase of 25 paisa in retail tariff up to 150 kWh (kiloWatt-hour) per month. Before that, the last increase in the domestic and commercial electricity tariff was effected in 2018-2019.

The UT has projected to generate revenue of Rs 926.23 crore from the revised retail supply tariff for 2023-24.