With the Madhya Pradesh Power Management Company (MPPMC) proposing a steep hike in power tariff in the state for the next financial year, the power consumers are worried that their bills would go up significantly. However, it may not exactly be the case.
A look into proposals made in previous years reveals the planned hike didn't materialise, as the Madhya Pradesh Electricity Regulatory Commission (MPERC) hadn't agreed to it. As a result, the hike was much less compared to that proposed.
For 2010-11, the proposal was 24.31%, but the hike approved by the commission was 10.66%. Similarly, for the year 2011-12, the discoms proposed a hike of 27.27% but only 6.14% increase was okayed. In 2012-13 too, the proposed hike was 23.18% but 7.17% was enforced.
However, officials in the power management company feel that this year the tariff needs to go up, as there was no increase in the last couple of years. Plus, the discoms need money to meet the increased operational costs and other factors.
In 2012-13, 9.38% hike was proposed but there was no immediate increase. The commission later okayed a hike of only 0.78%. Similar was the case in 2013-14, the reason being consecutive elections.
"The power management company sends the proposal but the tariff is approved by the regulatory commission, only after reviewing the practicality of the plan. A public hearing is also held before the tariff is approved," said an official with the power distribution company, on the condition of anonymity.
This year, the common proposal of hike for the three discoms in the state has been 24% for all categories of consumers. "For domestic consumers, a hike of 19.7% has been proposed for the next fiscal year," Manu Srivastava, managing director of the MP Power Management Company, had said.