BERC keeps power tariff rate unchanged for FY17

The Bihar Electricity Regulatory Commission (BERC) today kept the power tariff rate unchanged for all types of consumers.
The BERC Chairman S K Negi along with two members of the commission - Rajiv Amit and S C Jha - passed the order even as the North Bihar Power Distribution Company and South Bihar Power Distribution Company had sought an upward revision of the rate - seven to eight per cent for various categories.
"The commission considers no increase in the tariff rates for retail sale of electricity by NBPDCL and SBPDCL during 2016-17," Negi told reporters.
Further The commission found a combined revenue gap of Rs 345.40 crore of both discoms for financial year 2016-17.

It has also found a huge revenue surplus of Rs 1,916.27 crore during Annual Performance Review for the ongoing financial year. Therefore, the commission does not consider increasing tariff to meet the entire revenue gap arrived for 2016-17, he said.
The state government has indicated Rs 3,834 crore as resource gap assistance to discoms during 2016-17, out of which Rs 1,442.73 crore will be adjusted towards the higher distribution loss compared to the approved distribution loss of 19.25 per cent.

The remaining amount of resource gap of Rs 2,391.27 crore will be adjusted towards subsidy required for Kutir Jyoti/BPL (Rural), private agriculture and rural consumers of both discoms, thus leaving a revenue gap of Rs 345.40 crore for 2016-17.

Although the amount of surplus is substantial, the commission does not consider appropriate to carry forward this surplus to the ARR of 2016-17 as the review is not based on the annual accounts, Negi said.
It also approved the distribution loss trajectory for both the discoms at 19.25 per cent for FY17 from the existing distribution loss of NBPDCL's 33 per cent and SBPDCL's 45 per cent.