E-Paper
No power tariff hike planned in Chandigarh this year
Chandigarh administration sends recommendation to Joint Electricity Regulatory Commission that will take the final call
In a huge respite for 2.4 lakh electricity users in Chandigarh, the UT administration has proposed no hike in their power tariff for 2022-2023.
In its petition submitted with the Joint Electricity Regulatory Commission (JERC) on Tuesday, the administration has recommended retaining the existing power tariff for the 2022-23 fiscal. “UT proposes to continue the tariff as approved by the commission for FY 2021-22 vide order dated March 30, 2021,” states the petition.
Notably, the last increase in the domestic and commercial electricity tariff was in 2018-2019. In fact, last year, the rates were slightly reduced, though the UT had requested to keep them unchanged.
Chandigarh has more than 2.4 lakh consumers, who receive power bills comprising the actual consumption and fixed charges.
“The tariff is dependent on the financial health of the electricity department. Losses push for increase in the charges, while a revenue surplus may lead to reduction or no hike. It all depends on the JERC order,” said a senior UT official.
Based on the actual ARR (annual revenue requirement) and revenue for FY 2020-21, the electricity department’s accounts reflect a revenue surplus of ₹39.44 crore.
The administration is in the advanced stages of the department’s privatisation.
It was on January 7 that the Centre had given its nod to the UT administration’s proposal, paving the way for transfer of services to private hands.
UT had selected Kolkata-based industrial and services conglomerate RP-Sanjiv Goenka (RPSG) Group after the firm quoted the highest bid – ₹871 crore against the reserve price of ₹175 crore – for takeover of the services.
The department will be bundled into a company and its shares transferred to the company.
The privatisation process has been entangled in legal battles since the UT Powermen Union approached the Punjab and Haryana high court against UT’s move, which also elicited criticism from Resident Welfare Associations and opposition parties.
There was also a fear that privatisation will lead to increase in tariff, though the administration has maintained that it will be decided by JERC, as is being done now.
A two-member body, JERC is an autonomous authority responsible for regulation of the power sector. Its objective is to consolidate the laws relating to generation, transmission, distribution, trading and use of electricity; take measures conducive to development of electricity industry; protect interests of consumers and rationalise electricity tariff.
