Power tariff in Haryana likely to go up from April 1

Feb 20 2013, 05:18 IST
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SummaryHowever, the hike could be Rs 1.5 per unit in case the revenue gap was needed to be met within a year.

To bridge the whopping revenue gap of over Rs 5,800 crore, Uttar Haryana Bijli Vitaran Nigam (UHBVN) and Dakshin Haryana Bijli Vitaran Nigam (UHBVN) have proposed to increase power tariff in Haryana by at least 75 paise per unit from April 1 if the revenue gap needed to be met within two years.

However, the hike could be Rs 1.5 per unit in case the revenue gap was needed to be met within a year. The proposed hike will be implemented to all categories of consumers.

Power utilities have projected a revenue gap of Rs 5836.75 crore by end of 2013-14. Two proposals of bridging the gap have been submitted to the Haryana Electricity Regulatory Commission (HERC) for its approval.

According to the first proposal of power hike (1.5 per unit), power utilities claim to be covering at least Rs 5732.91 crore, leaving a revenue gap of around Rs 103.84 crore that can be met through financing by banks. Under the second proposal, a revenue gap of around Rs 2473.18 crore will be covered, leaving another Rs 3363.52 crore as deficit.

Under the first proposal, a Fuel Surcharge Adjustment (FSA) of 75 paise per unit and Regulatory Assets Surcharge (RAS) of 76 paise per unit will be levied. “After levying both FSA and RAS, electricity per unit will be costlier by around Rs 1.51 per unit,” an UHBVN official said.

According to the second proposal, FSA of 48 paise and RAS of 27 paise per unit will be levied. “To avoid shocking the consumers, we are proposing a 75 paise per unit hike as per second proposal,” said Devender Singh, Managing Director of UHBVN and DHBVN.

He added: “This is inevitable. We have proposed to levy these additional charges because of payments we had already made for power purchases. If consumers want adequate power supply, they will have to bear additional costs. These measures should have been introduced much earlier.”

“From 2001 to 2010, while power generation costs had gone up by 300 per cent, tariffs were merely increased by 50-60 per cent. It led to a huge revenue gap, which we are now trying to meet. If we fail to bridge this gap, power purchases will reduce and consumers will not get adequate power,” said Singh.

FSA is the amount calculated as deficits of power utility companies during the previous year, which is to be collected from consumers. While domestic

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