Haryana Inc miffed with power tariff

The revision in tariff saddled with fixed charges imposed by Haryana Electricity Regulatory Commission (HERC) has not augured well with industrialists in the state who have been left fuming.

The HERC decision to impose ‘fixed charges’ has resulted in doubling the electricity tariff for industries thus threatening to derail their growth. Fixed charges have been identified at Rs 120 per Kva of sanctioned contract demand per month for Heavy Transmission (HT) industries and Rs 100 per Kw of connected load per month for the Low Transmission (LT) industries.

Terming the decision of HERC to impose ‘fixed charges’ as arbitrary, industrialists fear hike in power tariff could delineate the industry in Haryana from neighbouring states rendering them uncompetitive.

 

Haryana Electricity Regulatory Commission which determines the tariff for generation, supply, transmission and wheeling of electricity, has revised the tariff of electricity on September 1, 2010 and also imposed fixed charges.

Haryana Chamber of Commerce and Industry (HCCI) along with Faridabad Small Industries Association (FSIA) and fifteen other industries’ associations have filed a joint appeal with the Central Tribunal, New Delhi regarding the steep power tariff hike from October 1, 2010. The appeal was filed on November 1, 2010 and industrialists maintain although they did not expect a stay against the tariff hike but they do expect justice in a short period of time.

HCCI President (Panchkula Chapter) Vishnu Goel lamented the revision in tariff done by HERC was an arbitrary decision taken without consultation of industry organisations.

Fixed charges have been identified at Rs 120 per Kva of sanctioned contract demand per month for Heavy Transmission industries and Rs 100 per Kva of connected load per month for the Light Transmission industries.

The fixed charges have been imposed in addition to the minimum monthly charges being levied on the industry.

Minimum monthly charges are levied on the industry and in case the limit is exceeded, users pay actual charges at the rate of Rs 130 per Kva.

However the fixed charges levied in addition to minimum usage charges has resulted in electricity turning out to be a costly affair.

The imposition of fixed charges coupled with related factors like revision in energy charges, increased peak load charges and levying of tariff on peak load charges in Haryana has resulted in electricity turning to be costly affair for industries in the state. (The peak load generally refers to when maximum electricity is drawn by users)

The industries estimate the total power cost coming to them with saddling of fixed charges worked put to be Rs 7-8 per unit as against Rs 4.73 per unit earlier, in absence of fixed charges.

Compared to neighbouring states the revision in tariff had made electricity costlier.

FSIA meanwhile has maintained it was beyond doubt the hike in tariffs by HERC is going to adversely affect the industry across the state.

Having studied the Commission’s order, they have felt there was a good case to file a petition with the Central Electricity Tribunal at New Delhi against the said order.