JSEB raises power tariff by 16%

With the approval of Jharkhand State Electricity Regularity Commission (JSERC), Jharkhand State Electricity Board (JSEB) has moderately increased power tariff on an average of 16 per cent. The new power tariff has been implemented from this month.

While domestic consumers with up to 4KW installed load at home would have to pay 50 paise more per unit, those with an installed load above 4KW would be required to pay an additional 60 paise per unit. Thus the new rate has been fixed at Rs 2.90 per unit against the earlier rate of Rs 2.40 per unit for the consumers having installed load of 4KW.

The new rates for domestic consumers with an installed load of 4KW, consuming up to 200 units per month would be charged Rs 2.40 per unit from Rs 1.90 earlier along with a fixed charge hiked from Rs 5 to Rs 40. However, industries have been burdened with the steepest hike of 80 paise more than the existing rate per unit. Commercial establishments will have to bear additional burden of 45 paise per unit. JSERC chairperson Mukhtiyar Singh told Business Standard that the loss-making power board could get a sigh of relief with the additional revenue of around Rs 450 crore from the increased power tariff during financial 2012-13.

He said the Commission held public hearings in different parts in the state and most consumers agreed to a modest hike. However, the power utility (JSEB) urged the commission to increase power tariff at a reasonable level so that it could sustain its additional financial burden due to enhanced cost of inputs like coal ,oil and .equipments.JSERC chairperson said that the new power tariff would enable the loss-making power utility (JSEB) to recover all its justified costs as the Commission could not allow the power board to pass on its unjustified cost to consumers.

Sources of the commission pointed out that as per statutory provision, the power generating company is required to file the application for approval of generation tariff for each year 120 days before the commencement of the respective year or such other date as may be directed by the Commission.

The Commission accepts the application with such modifications / conditions as may be deemed just and appropriate and after considering all suggestions and objections from public and other stakeholders, issue an order containing targets for controllable items and the generation tariffs for the year within 120 days of the receipt of the application.

Sources in JSEB said that the accounts of JSEB for the years 2002-03 to 2009-10 had not yet been finalized /audited due to delay in sharing loss and liabilities between undivided Bihar and Jharkhand. However, the commission had allowed a marginal increase in power tariff twice since the functioning of JSEB from April, 2001.Sources (JSEB) claimed that in spite of marginal increase in power tariff made by the JSERC this year, JSEB’s power rates were still cheapest in the country. When asked, JSERC Chairperson said that in the case of domestic consumers it was true.