No hike in power tariffs in Uttaranchal

Here is good news for power consumers in Uttaranchal. For the third consecutive year there will no hike in power tariffs, despite pressure from the state-run companies.

Recently, it was reported that power got cheaper for most categories of consumers in Himachal Pradesh by 10 to 35 per cent. The state-run companies wanted the power rates to increase by 50 paise to Re 1.10.

"The petitions filed by the Uttaranchal Jal Vidyut Nigam Ltd (UJVNL), Power Transmission Corporation of Uttaranchal Ltd (PTCUL) and Uttaranchal Power Corporation Ltd (UPCL), and the proposals of these companies to increase consumer tariffs ranging from 50 paise to Rs 1.10 were rejected," UERC Chairman Divakar Dev told reporters here today.

"Power tariffs will not be increased," Dev said.

For domestic consumers living below the poverty line, power will continue to be available at Rs 1.50 per unit while for remaining consumers, the tariff will be charged at the rate of Rs 2 per unit.

"Minimum charges for all consumers have been abolished," Dev said.

Stating that the state government had proposed that tariff for steel units and other Power Intensive Units (PIUs) should be brought down and made equal to that for High Tension (HT) industries, Dev said effective tariff for steel units had been made equal to the effective tariff for HT industries.

On whether the power supply to steel units would affect the local consumers, Dev said the state would witness several power cuts in the days to come.

As per an investigation report by an independent agency, the Commission said UPCL, which supplies power to consumers, has recovered excess amount of Rs 755.53 crore from the consumers.

The Commission has directed that out of this sum, a total of Rs 654.94 crore should be transferred to the Network Development Fund (NDF) along with an interest.

Till such time that UPCL transfers this amount, interest on the unpaid amount will recovered at rate of 15 per cent per annum and the same will passed on to consumers through tariffs.

The NDF will be used for leveraging fresh investments for upgrading and strengthening the distribution network. "No amount will be drawn from this fund without the Commission's approval," Dev said.

To help the power system in the state, the Commission has increased the existing rebate by Rs 25 per month to Rs 75 per each 100 litre capacity.