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New tariff pinches pocket

Residents will have to pay more for electricity consumption when the new power tariff comes into effect in June. Vimal Chander Joshi reports.

delhi Updated: May 30, 2011 01:15 IST
Vimal Chander Joshi

Residents will have to pay more for electricity consumption when the new power tariff comes into effect in June.

The tariff for domestic consumers have been increased from five to 10 paise per unit, depending on the consumption limit. For commercial and industry users, the rates have been increased by 10 paise per unit.

However, the minimum maintenance charge (MMC) for domestic category consumers has been reduced.

Currently, the MMC is R80 per KW per month, whereas it will now be R80 for the first 2 KWs and R70 for further consumption, according to DHBVN.

For commercial consumers, there is a reduction of R15 in the fixed charge — from R130 to R115 per KW. The low tension (LT) industry tariffs also saw a reduction in fixed charges from R100 to R75 per KW per month.

The most substantial changes have been brought in the category of hoardings and lightning. If you are planning to put up a hoarding or decorative lightning, then get ready to pay more.

The existing rate of R5.95 per unit has been increased to R6.50, whereas fixed charges, which were non-existent, have been introduced at R130 per unit per month.

But was this mandatory? The increase in tariff was necessary as the current tariff would have incurred the DHBVN a loss of R1,458 crore in financial year 2011-12.

The Haryana Electricity Regulatory Commission stated that the entire revenue gap can't be passed on to consumers. To avoid 'tariff shock', only a part of the overall deficit has been transferred to consumers.

Last year, the state government realigned the tariff to earn extra money to the tune of R1,200 crore. This, out of the total revenue gap of R2,100 crore to its two power distribution companies.

Residents expressed resentment over the hike.

"DHBVN increased the tariff to cut losses, but why can't they minimise line losses by being more vigilant? Why should residents pay for their laxity?" said Palam Vihar resident Sunil Yadav.

"The hiked power tariff comes at a time when people haven't even come to terms with the increase in fuel prices," said Sudhir Kapoor, secretary general, DLF RWA.

Residents react

More residents across Gurgaon feel the hike in power tariff will pinch their pocket.

They say the power authorities should have streamlined their distribution network and made strict norms against power theft. Residents say some of the revenue losses may have been by way of ineffective distribution channels.