Sukhwinder Bharaj

Spokesman News Service

In the latest Tariff order for following year 2017-18 the power consumers has to bear Rs 2522.62 crore more as a tariff hike. The consolidated gap ( deficit ) upto and including FY 2017-18 works out to be Rs 2522.62 crore against PSPCL's proposal of Rs 11575.53 crore.

An overall increase of 9.33% is required over the existing tariff rates to cover this revenue gap in FY 2017-18. Accordingly the commission has decided to increase the tariff by 9.33% over the existing staff. However, in view of regulatory and socio economic requirements, the percentage of increase in tariff for different categories of consumers varies.

The combined average cost of supply works out to be 642.45 paise per kWh in FY 2017-18 and the cross- subsidy levels for all categories of consumers have been kept within ± 20% as mandated by Tariff policy. This year the commission has determined the APR for 1st MYT control period of FY 2017-18 to 2019-20.

Under MYT regime, the controllable and normative components of APR has been determined and fixed for the control period. Only uncontrollable costs, specified in MYT regulations will be reviewed during annual performance review exercise.

Further, the commission has decided to introduce the Two part tariff structure in this tariff order for all categories except AP. The Two part tariff structure envisages a fixed charge and a variable charge. This has been adopted by almost all the states in line with the National tariff policy.

Some other salient features include the surcharge for continuous process industry has been abolished, ToD rebate at night has been increased from Rs 1 per kVAh to Rs 1.25 per kVAh, consumers availing supply at higher voltages shall continue to get power at discounted rates, ToD tariff have been extended to NRS/ Bulk supply consumers also, with sanctioned Contract demand exceeding 100 kVA and many more.

In these tariff rates, the commission has also accorded provisional approval to the business and capital investment plans of the utilities. The final order shall be issued separately. The commission has also received various representations against the complaint redressal system of the PSPCL.

The decision has also been taken to re- examine the existing grievance redressal mechanism in consultation with PSPCL and take appropriate action as required.