Power tariffs reduced
Rakesh Lohumi
Tribune News Service

Shimla, August 24
The industrial sector, which has been reeling under the impact of global economic meltdown, will have something to cheer about. The State Electricity Regulatory Commission has reduced the power tariff by 7 per cent. It has also provided even greater relief to the domestic consumers by effecting a reduction of 22 per cent in the tariff for basal slab.

The demand charges for small and medium industry have been reduced by Rs 50 per KVA to offset the adverse impact of working only in one shift. It will mean a 15 paisa per unit reduction in tariff for the segment. Simultaneously, the commission has also reduced energy charges for large industry by 15 paise per unit, to effect a drop of 7 per cent of the basal tariff. The net impact of this reduction is estimated to be Rs 47.43 crore.

Announcing the tariff order for 2009-10 here today, chairman of the commission, Yogesh Khanna, said the reduction in energy charges would help to circumvent the recessionary phase in the life cycle of industry in the state. It should go a long way in improving the bottom line of industry in a state which had locational disadvantage. The commission had watched with a degree of dismay the impact of recession, the economic downturn and degrades in capital formation in the national system, as well as for industry in the state.

The tariff for all domestic consumers consuming power up to 150 units per month has been reduced from 90 to 70 paise per unit (after subsidy). The rates for 151 to 300 units ( Rs 1.70 paise per unit) and above 300 units ( Rs 2.45 per unit) will remain unchanged. The net impact of the reduction will be Rs 11.39 crore which will reduce the burden on the government which is providing a subsidy of Rs 140 to the domestic and agriculture categories.

The tariffs for all the other categories like non-commercial non-domestic, commercial, street lighting and bulk supply remain unchanged. The commission lamented that much higher benefit could have been passed to consumers by way of reduced tariffs but for the slow pace of power sector reforms in the state which still remains a back-water and one of the few which have not been able to implement the major thrust of Electricity Act, 2003.

The average cost of power supply has come down from Rs 3.68 to Rs 3.62 per unit.

The aggregate revenue requirement of the board has been assessed at Rs 2341 crore whereas the revenue from sale of power has been assessed at Rs 2483.59 crore, leading to a surplus of Rs 142.65 crore, to be utilised by the commission to offset the impending revision in tariffs of central sector generating stations, the likely impact of the implementation of the pay commission recommendations and the variations in the projections made in the tariff order.