Electricity tariff raised nominally in Bihar

Increase will generate Rs 113 cr for power distribution companies

The Bihar Energy Regulatory Commission (BERC) on Monday announced to nominally increase in the power tariffs in the state. Electricity consumers in Bihar will have to shell out 10-15 paisa per unit more with effect from next month. 

The increase will generate Rs. 113 crore for the power distribution companies (DISCOMs). Disclosing the details of the annual revenue requirement (ARR), filed by the (DISCOMs), the BERC chairman UN Panjiar said, "For the FY 2015-16, the DISCOMs have projected a revenue gap of Rs 2,540 crore at the existing tariff rates and proposed to increase the average tariff by approximately 21 percent to meet the revenue gap. However, after examining and verifying information provided by these companies and considering the suggestions of the stakeholders and prudence check of revenue expenses, the commission has determined the revenue gap of Rs. 709.60 crore for next fiscal." 

Out of this amount, sum of Rs. 480 crore would be provided by the state government to the DISCOMs as resource gap assistance, leaving a revenue gap of Rs. 229 crore. In this amount, the BERC has asked the two state-owned DISCOMs to increase the revenue and garner about Rs. 116 crore by increasing their efficiencies. Panjiar said, "For meeting the revenue gap of Rs. 113 crore, we have decided to marginally increase the existing tariff rates by about 2.5 percent in all categories except agriculture, street light and public water works consumers." 

"This works out to be 10 paise extra per unit for the metered consumers in rural areas, whereas metered urban consumers have to pay extra 15 paise per unit from the next month," said BERC Chairman. From the above increase, the unmetered KJ consumers have to pay Rs. 5 more per month and unmetered consumers in rural areas will have to pay Rs. 10 extra per month. 

The commission has abolished Monthly Minimum Charges for the rural industrial consumers having single phase connection. The commission has also withdrawn existing flat rate of 5 per cent of power factor surcharge to the LT consumers. Meanwhile, the commission has ordered the DISCOMs to make Time of Day (TOD) tariff mandatory for all HT consumers. 

Meanwhile, the commission has expressed concerned over the high distribution losses in the state. "DISCOMs are working hard in this area, but still it is quite high. They must work hard to bring it within the acceptable range of 20 percent." The DISCOMs have projected distribution losses of around 37 percent for the next fiscal.