West Bengal May Raise Power Tariff In Three Months

The West Bengal government is preparing for a power tariff hike in another three months under pressure from the two major power agencies - CESC Ltd and the West Bengal State Electricity Board (WBSEB).

West Bengal, which is planning to refer the tariff revision issue to a newly constituted state regulatory commission, may become the first state to do so. Though the formation of a proper commission will have await amendment of the Electricity Act, the state government has already announced its intention for form a panel on its own, if the proposed Central amendment is not passed in the monsoon session of Parliament.

 

A state commission without a Central amendment of the Act, however, will have only a recommendatory role.

Even in that case, the state government will find the arrangement convenient.

The commission will hear all the sides, including the consumers, before considering the CESC and West Bengal State Electricity Board proposals to review the tariff rates.

CESC had taken the initiative for a tariff revision in May. But, the government had rejected the plea, saying the company should submit a fresh proposal after its 1996-97 balance sheet is audited. The audit will be completed within a month.

The West Bengal State Electricity Board had placed its tariff revision proposal during its last board meeting.

However, power secretary S Barma who is also an ex-officio member of the Board, had reportedly asked for more details on realisation of bills following the last tariff revision in November 1996.

Both the state electricity board and CESC have suffered losses in transmission and distribution. CESC was, in fact, penalised for it distribution losses, which touched 20 per cent in 1995-96. This year too, its performance has remained unchanged.

The government asked the company to absorb all distribution losses above the permissible ceiling of 14 per cent.

However, no such ceiling was applied in the case ofWest Bengal State

Electricity Board.

It was argued that the Boards losses were bound to be high as its lines extend over hundreds of kilometres in rural areas. State power minister S K Sen had pulled up the board management for its poor bill collection. Despite its poor performance, the government has agreed in principle to raise the tariff. It is, therefore, only a matter of time before the consumers are asked to fork out more money.