MP discoms proposes up to 25% power rate rise

State electricity distribution companies (discoms) have demanded up to 25 per cent increase in rates across consumer categories.

The demand is aimed at bridging the revenue gap, in the range of Rs 1,600 crore to Rs 1,835 crore (approximately), for different discoms.

The state's revenue gap had touched Rs 5,246 crore this year from Rs 3,516 crore in 2014-15. The state government, in its recent budget, had increased capital infusion of Rs 5,471 crore in the power sector.

The discoms have not spared economically weaker sections and have proposed 13 per cent increase, where consumption is up to 30 units only. The existing tariff is Rs 2.90 per unit, which is proposed to go up to Rs 3.30 per unit. It also includes rural domestic consumers across the state.

Similarly, the rates for domestic consumers, using between 50 and 100 units, might be hiked by 30 per cent. For domestic consumers, whose monthly consumption ranges between 100 and 300 units, the companies have demanded a hike of 18 per cent from Rs 4.80 per unit to Rs 5.70 per unit, while tariff for consumption between 300 and 500 units is likely to go up to Rs 6.15 per unit from existing Rs 5.20 per unit.