Cesc May Get Green Signal For 15 Per Cent Tariff Increase
The West Bengal government has already turned down the company's demand to reconsider the fuel surcharge granted to it a few weeks ago. The state power department is expected to come out with necessary orders in a day or two.
The company wants a hike in power tariff ranging from 20 to 40 per cent for various categories of consumers.
The sharp cut from its power tariff hike proposal will disappoint CESC, which is already smarting under the humiliation of being awarded only one third of its proposed 24 paise hike in the fuel surcharge rates.
An average 15 per cent increase in tariff will give the company an additional annual revenue of around Rs 175 crore against its expectation of Rs 350 crore.
The award of just eight paise rise in fuel surcharge against its demand for 24 paise has resulted in a potential loss in revenue of about Rs 75 crore.
In other words, the state government is likely to allow the company an additional revenue of Rs 210 crore on account of tariff and fuel surcharge revision while the company would have liked to earn an additional Rs 460 crore.
After the state government announced the rates of fuel surcharge revision, the company appealed twice to review the rates. But, the power department has stuck to its stance. Recently, the company has requested to allow some increase in the provisional surcharge rates for the years 1995-96 and 1996-97.
The final surcharge rates are subject to audit of CESC's accounts.