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Home News Power Sector News Bihar - BERC recommends 19 per cent tariff hike

Bihar - BERC recommends 19 per cent tariff hike

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BiharEven though the Bihar Electricity Regulatory Commission (BERC) has not accepted the plea of Bihar State Electricity Board (BSEB) to hike power tariff by 65%, domestic power consumers will end up paying about 19% higher bill following an increase in power tariff for 2011-12 allowed by the regulator. The increase will become effective with the bill of May, payable in June.

What's more, if consumers get quality power, they will have to cough up 10% more.

Domestic urban consumers who were paying Rs 260 per month earlier, will now have to pay Rs 310. Similarly, for those paying Rs 1290 per month, the revised bill will be Rs 1510.

The BERC has allowed the BSEB to impose 10% premium on energy bill for providing adequate and quality electricity in specified areas. Before imposing premium, BSEB will have to identify the areas/localities where uninterrupted quality power supply is being made, said BERC chairman U N Panjiar.

Releasing the power tariff of BSEB for 2011-12 here on Wednesday, Panjiar said the hike would result in additional revenue of Rs 481 crore for the board. In fact, BSEB had projected a revenue requirement of Rs 5296 crore with a revenue gap of Rs 1714 crore even after taking into account the amount of Rs 1080 crore payable as resource assistance grant by the Bihar government.

"BSEB had proposed increase in overall tariff rates of about 65% with a hike in almost all categories of consumers", said BERC consultant and tariff analyst Nand Sharma. The BERC has also abolished the monthly fuel surcharge of 99 paise from May 1 onwards. Now, BSEB will have to take prior permission for imposing fuel surcharge.

Source- Times of India


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