Assam electricity tariff to fall by 14 paise/unit from April

Power tariff in Assam will fall by about two per cent from next month with the regulatory body announcing a cut in energy charges.

"The energy charges have been reduced by 20-30 paise per unit. The Commission has marginally increased the fixed/demand charges for most categories. This has resulted in an overall decrease of 2 per cent (14 paise/unit) as compared to the existing tariff," Assam Electricity Regulatory Commission (AERC) said in a statement.

AERC said the cut in energy charges for Jeevan Dhara segment will be 10 paise, while it will be cut 50 paise for public lighting for every unit consumed.

However, fixed charges were not raised for 2-3 categories as the rates were already higher than that of other segments.

AERC said that after final adjustment for 2016-17 and considering the standalone revenue requirement for 2018-19, the cumulative revenue surplus worked out to Rs 109.56 crore, the benefit of which has been passed on to the consumer by revising the tariff with effect from April 1, 2018.

Explaining the reason to hike the fixed charges, the regulator said: "On analysis, it was seen that around 6 per cent of the Annual Revenue Requirement (ARR) of Assam Power Distribution Company Ltd (APDCL) comprises fixed costs. However, only 12 per cent of the ARR is recovered through fixed/demand Charges.

"With the revision in fixed/demand charges, APDCL will be able to recover only around 14 per cent of the ARR through the fixed/demand charges."