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Home News Power Sector News Jammu & Kashmir - 17% Power tariff hike from October 1

Jammu & Kashmir - 17% Power tariff hike from October 1

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Jammu & KashmirThe Jammu & Kashmir State Electricity Regulatory Commission has approved average 17 percent hike in power tariff for various categories of consumers for 2011-12. The hike includes 10 percent for domestic categories and 20 percent for commercial consumers. Though the Power Development Department, in its petition filed before the 3-member SERC, headed by S M Desalphine, had pleaded that there should be 46 percent hike in energy tariff with retrospective effect from April 1, 2011, the Commission while rejecting the plea has made it clear that the new rates would be applicable from October 1 this year.
A statutory body with authority to regulate the power sector in JK, SERC has approved average 10 percent tariff hike in domestic category and 20 percent hike in non-domestic/commercial category for metered areas against PDD's proposed hike of 40 percent and 59 percent respectively. The approved hike is 18 percent in various slabs for the domestic consumers without metered connections.
The revised rates have been okayed at 18 percent hike in the existing tariff rates in state and central government departments (against proposed 20 percent), 10 percent hike in agriculture department (against proposed 30 percent) and 15 percent for industrial sector against proposed rates of 93 percent, 65 percent and 75 percent in different slabs.
Power tariff"The extent of T&D losses are extremely high in comparison to the national average and should not be passed on to the consumers. Looking at these losses, it is unambiguously clear that PDD has not made any serious effort to reduce the same. It is (now) seeking to pass on the burden to the consumers, particularly to the industrial consumers who contribute the maximum revenue to PDD," the Commission has observed in its order on annual revenue requirements and determination of retail tariffs for 2011-12.
For High Tension (HT) industrial supply, an increase of 15 percent for the 11 KV and 33 KV consumers has been approved on the applicable energy charges and demand charges for supply at all voltage levels in the category.
The hike in tariff rates for pubic street lightning is 18 percent, 25 percent each of LT and HT Public Water Works, 15 percent each for LT/HT/HT-PIU Industrial supply, and 20 percent hike for general purpose/bulk supply. "JKPDD is yet to demonstrate its resolve and commitment to reform the power sector in the state. As a government department with an assured budgetary support from the Government, it has not been able to improve its operational efficiencies in the absence of a compulsion to generate additional revenue for its financial health and survival," SERC order mentions.
The revised tariff rates approved by the Commission are five percent more compared to 12 percent increase in power tariff rates which were approved for last fiscal. There has been a substantial increase in the T&D losses over the years which have gone up from 46.98 percent in 2005-06 to 60.99 percent in 2010-11. JKPDD has further proposed a loss level of 59.72 percent for 2011-12.
The Commission has also approved Rs 26,14.18 crore Power Purchase Cost for 2011-12 against the proposed Rs 2912.73 crore by the PDD.

Source- Greaterkashmir


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