UT Admn not to propose increase in power tariff

Ramkrishan Upadhyay

Tribune News Service

Chandigarh, November 26

In a major relief to over two lakh consumers, the UT Electricity Department has decided not to propose any hike in the rates of electricity for the next fiscal (2020-2021) to the Joint Electricity Regulatory Commission (JERC) in the aggregate revenue requirement (AAR) to be submitted by the end of this month. The JERC had fixed November 30 as the deadline for filing the tariff revision petition, also known as the AAR.

As per the rules, the JERC will hold public hearings on the AAR and also invite suggestions and objections and take a decision.

Sources said the consultant appointed by the Electricity Department to prepare the AAR had calculated the revenue and expenditure for the next fiscal and found that there was an “expected surplus” of Rs 7.23 crore. The information revealed that the department was expecting a revenue of Rs 897 crore from the sale of electricity, while it would require Rs 890 core for the purchase of electricity.

In view of this, it was decided not to propose any hike in the AAR. This is the second consecutive year that residents will have relief from a hike in the electricity rates.

While the department had sought a hike of up to 22 per cent, the JERC had rejected the proposal for the current year. The department had sought permission for the hike to overcome the loss in a petition filed before the JERC.

The department had proposed a hike in the power tariff for all categories of consumers. While the department was not allowed to enhance the tariff, it is levying FPCCA charges on consumers quarterly to make up for the loss to some extent.