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Home News Power Sector News HP ups subsidy to cushion power tariff hike

HP ups subsidy to cushion power tariff hike

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DhumalTo cushion the impact of 12% power tariff hike announced for domestic consumers by HP State Electricity Regulatory Commission on Tuesday, a day later, the government has stepped in and hiked the power subsidy to Rs 166 crore, largely wiping out the additional burden on the domestic consumer. Making the subsidy announcement, chief minister Prem Kumar Dhumal said the government would bear the additional electricity tariff burden for the domestic consumer. The power subsidy bill would now increase from Rs 146 crore in 2010-11 to Rs 166 crore in 2011-12. The enhanced subsidy will ensure that the tariff increase for domestic consumers is marginal, said Dhumal.

Below poverty line consumers would continue to get power at old rates of 70 paisa per unit and tariff for agriculture LT category consumers would remain unchanged at 50 paisa per unit, the CM said. Tariff for street lighting, commercial supply and small industries would also not be affected, he added.

An increase of Rs 200 crore for meeting increased employee costs of HP State Electricity Board (HPSEB) and an additional Rs 200 crore spent for buying merchant power to meet winter shortages made the electricity regulatory commission recommend atariff increase in its order. It is for the second consecutive year that tariff has been increased, which would fetch Rs 227 crore additional revenue for HPSEB.

The commission in its order had reduced the subsidy for BPL families from 50 to 40 units and increased tariff from Rs 1.80 to Rs 2.10 per unit. Based on power usage, four rates had been proposed for domestic consumer categories by the regulatory commission.

Source- Times of India


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