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Home News Power Sector News Jammu & Kashmir - SERC approves 12% increase in power tariff

Jammu & Kashmir - SERC approves 12% increase in power tariff

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J&KMaintaining that the state Power Development Department can’t “pass on its failures” to the consumers, Jammu & Kashmir State Electricity Regulatory Commission has turned down the department’s plea for hiking the electricity tariff rates by 62 percent and instead has approved only 12 percent average hike. The 3-member commission, headed by S M Desalphine, has approved Rs 2582.12 crore Power Purchase Cost for the current fiscal against the proposed Rs 2453 crore by the PDD. The commission which is a statutory body having authority to regulate the power sector in JK, has approved average 14 percent tariff hike in domestic category and 17 percent hike in commercial category. The revised rates have been approved at three percent hike in the existing tariff rates in state and central government departments, 10 percent hike in agriculture department and 22 percent hike in Water Works department.

Officials said the PDD had projected 62 percent hike in the existing power tariff, hoping that once approved the department would tide over the gap in the Power Purchase Bill and actual revenue generation within three years.

“However, the Commission categorically declined such a sharp hike pointing that the department had failed to tide over the transmission and distribution losses which had gone up to 65 percent for the last fiscal,” officials said. But the Commission has approved higher tariff hike for un-metered consumers with an aim to promote metering in the State. However the SERC has appreciated the efforts of the PDD to computerize its records, resulting in efficient tariff collection, officials said.

The new tariff rates would remain in vogue from April 1, this year to March 31, 2011. The revised tariff rates are respectively 23 percent, 17 percent, 11 per cent and 13 percent for street lightning, LT Industrial Supply, HT Industrial Supply and General Purpose/Bulk supply.

The new tariff rates for domestic use stand at Rs 1.61/KW/Hr against the old rates of Rs 1.41/KW/Hr and PDD’s projection of Rs 1.70/KW/Hr.

For non-domestic/commercial use, the tariff stands approved at Rs 2.69/KW/Hr against Rs 2.30/KW/Hr during last fiscal, Rs 4.90/KW/Hr as against the old rates of Rs 4.74/KW/Hr for State/Central Government Departments, Rs 1.42/KW/Hr against existing Rs 1.29/KW/Hr in Agriculture sector, from Rs 3.30/KW/Hr to Rs 4.05/KW/Hr for public street lighting. In LT public water works, the revised tariff rates are Rs 4.03 against the existing rates of Rs 3.30 and in HT public water works, the new rates stands at Rs 3.76 against the old rates of Rs 3.13. For LT industry per kWh of power will now cost Rs 2.46 against Rs 2.11 while the tariff for HT industrial supply will be Rs 2.91 against Rs 2.62.

The rates for general purpose/bulk supply have been fixed at Rs 3.78/kWh as against Rs 3.33/kWh.

For domestic consumers in metered areas the tariff rates have been approved at one rupee/unit for first 30 units of power against 90 paisa/unit during last fiscal. From 31 units to 100 units the rates have been revised at Rs 1.30/unit against the old rates of Rs 1.15/unit. The new rates are Rs 1.60/unit from 101 units to 200 units against the old rates of Rs 1.40/unit and above 200 units a consumer will have to cough out Rs 2.45/unit against the old rates of Rs 2.10/unit.

The flat rates stand revised at Rs 65 against Rs 50 for 1/4th kilowatt, Rs 190 against Rs 160 from 1/4th kilowatt to half kilowatt, Rs 240 against Rs 290 for half kilowatt to 3/4th of kilowatt, Rs 390 against Rs 320 for 3/4th of kilowatt to one kilowatt and Rs 760 against Rs 635 for One Kilowatt to two kilowatts.

In commercial category, the tariff rates have been revised from Rs 1.50/unit to Rs 1.80 per unit up to first 100 power units, from Rs 1.60 to 1.90/unit for 101 to 200 units, from Rs 2.30 to Rs 2.75/unit for above 200 units (single phase), and from Rs 2.65 to Rs 3.20/unit (for three phase like hotels).

The PDD had projected Gross Annual Revenue Requirement at Rs 2989.59 crore and the non-tariff income was at Rs 3.5 crore, as result of which the Net ARR stood at Rs 2986 crore.
However the SERC has approved net ARR at Rs 2975.15 crore with Gross ARR standing approved at 2978.65 crore.

Source- Greater kashmir


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