MP hikes domestic power tariffs

Domestic power consumers in Madhya Pradesh will have to pay more because the Madhya Pradesh State Electricity Regulatory Commission has approved the increase in power tariff submitted by the three state-owned power distribution companies.

The regulator has set a uniform power tariff for all the three companies but has slashed tariffs for the non-domestic category. Domestic category consumers will have to pay 5-10 paise per unit more than existing tariff. Consumption up to 50 units of power will attract no higher power tariff.

More than 50 units of power consumption will attract a tariff of Rs 3.05 per unit against the existing Rs 3.00 per unit, while 100 units will be available at Rs 3.50 per unit from the present Rs 3.10 per unit.

However, non-domestic category consumers will be charged Rs 5.45 per unit compared with Rs 5.80 per unit now. An option has been given to consumers for demand based tariff with an energy charge of Rs 4.30 per unit along with a set charge of Rs 150 per Kw or Rs 120 per KVA of billing demand per month for consumers receiving supply in urban areas and Rs 90 per Kw or Rs 72 per KVA in rural areas.

"Demand charges for industrial consumers of 11 KV and 32 KV voltage level have been slashed by Rs 30 per KVA per month and Rs 100 per KVA per month, respectively, while tariff has been increased for 33 KV by 5 paise per unit and 132 KV voltage level by 20 paise per unit, respectively," the regulator has said in a statement.

The new tariff proposals would generate Rs 7723.27 crore revenue to the three companies. This amount is Rs 1079.60 crore short of required 8802.8 crore for the year 2007-08.

Even after the dismantling of Madhya Pradesh State Electricity Board and a support of Rs 1,600 crore from the Asian Development Bank, the power situation has not improved in the state with transmission and distribution losses touching more than 40 per cent and frequent power cuts of more than 8 hours in urban as well as rural areas.