Chandigarh: Electricity Dept suffered Rs 185 crore loss last fiscal : The Tribune India

Join Whatsapp Channel

Chandigarh: Electricity Dept suffered Rs 185 crore loss last fiscal

At existing power rates, deficit may increase to Rs 407 crore in 2024-25

Chandigarh: Electricity Dept suffered Rs 185 crore loss last fiscal

Most residents of Sanjay Colony, Industrial Area, Phase I, Chandigarh, use kundi connection. Tribune Photo: Pradeep Tewari



Tribune News Service

Dushyant Singh Pundir

Chandigarh, June 22

After suffering losses in the past two financial years, the UT Electricity Department is again staring at a huge gap in the spending and revenue collection, which is likely to increase to Rs 194.81 crore in 2024-25. There will be a total loss of Rs 407.69, including Rs 185.96 crore carried forward from the previous fiscal, in the current financial year.

Revenue projection

The department submitted the net requirement for 2024-25 was projected at Rs 1,081.48 crore and the collection from retail sales (at existing tariff) at Rs 886.67 crore. Therefore, Rs 194.81 crore more would be required for the current financial year for power purchase and other expenses.

In the financial year 2021-22, the department posted a surplus revenue of Rs 85.73 crore. The next year, the profit turned into losses worth Rs 5.91 crore. The loss (gap between spending and revenue) further increased to Rs 185.96 crore in 2023-24. The gap is expected to increase to Rs 407.69 crore in the current financial year of 2024-25.

In a petition summited to the Joint Electricity Regulatory Commission (JERC), the Electricity Department stated that it was evident that the revenue at the current tariff is not sufficient enough to meet the cumulative revenue requirement for 2024-25. “Hence, the revision in the existing retail supply tariff schedule commensurate with the net revenue requirement has been proposed for 2024-25,” stated the department.

The department submitted that the net revenue requirement for 2024-25 was projected at Rs 1,081.48 crore and the collection from retail sales (at existing tariff) at Rs 886.67 crore. Therefore, Rs 194.81 crore more would be required for the current financial year for power purchase and other expenses.

To tide over the losses, the department has proposed an average increase of nearly 19.44% in the existing power tariff for 2024-25.

In a petition submitted before the JERC, the department has proposed a revision in the fixed as well as energy charges in different domestic and commercial categories for the current fiscal. However, the department can implement the revised rates only after getting approval from the commission.

In the domestic category, no increase has been proposed in the slab of 0-151 units, which remains at Rs 2.75/kWh. The department has proposed a hike from Rs 4.25 to Rs 4.90 per unit in the slab of 151-400 units and from Rs 4.65 to Rs 5.50 in the slab of 401 and above units. In the domestic high tension (HT) category, the department has proposed a hike from Rs 4.30 to Rs 5 per unit.

From the proposed tariff plan, the department is expected to generate a revenue of Rs 1,059.03 crore in 2024-25. The department submitted that the proposed retail tariff would commensurate with the much-needed revenue requirement for the ensuing year.

About The Author

The Tribune News Service brings you the latest news, analysis and insights from the region, India and around the world. Follow the Tribune News Service for a wide-ranging coverage of events as they unfold, with perspective and clarity.


Top News

Microsoft users worldwide report widespread outages affecting banks, airlines and broadcasters

Microsoft users worldwide report widespread outages affecting banks, airlines and broadcasters

News outlets in Australia — including the ABC and Sky News —...

US-bound Air India plane makes emergency landing in Russia’s Siberia; all passengers, crew safe

US-bound Air India plane makes emergency landing in Russia’s Siberia; all passengers, crew safe

Boeing 777 aircraft was carrying 225 passengers and 19 fligh...

Punjab CM Mann calls Rural Development Dept meeting, are panchayat elections round the corner?

Punjab CM Mann calls Rural Development Dept meeting, are panchayat elections round the corner?

Elections to five Municipal Corporations of Amritsar, Jaland...

NIA arrests key aide of Canada-based terrorist Lakhbir Landa

NIA arrests key aide of Canada-based terrorist Lakhbir Landa

Baljeet Singh, who hails from Barwani district of Madhya Pra...


Cities

View All