Even as the water tariff is set to increase by 3% from April 1, city residents have got a major relief, with the Joint Electricity Regulatory Commission (JERC) reducing the power tariff for the upcoming fiscal.
The new tariff, which has been decreased by up to 11%, will be applicable from April 1. More than 2 lakh consumers, across different categories, including domestic, commercial and industrial, will benefit from the JERC decision.
The last increase in the domestic and commercial electricity tariff was in 2018-2019.
In more cheer for residents, JERC has directed the administration to stop recovery of the quarterly fuel and power purchase cost adjustment (FPPCA) from all categories starting April 1, 2021, till further orders.
The electricity department, however, has been directed to submit the quarterly FPPCA calculation to JERC for review.
Surplus revenue since 2016
The department has standalone revenue surplus in each year from 2016-17 to 2019-20.
{{/usCountry}}The department has standalone revenue surplus in each year from 2016-17 to 2019-20.
{{/usCountry}}JERC observed in its order that the projected standalone surplus for 2021-22 and cumulative revenue surplus at existing tariff was expected to be ₹98.21 crore and ₹345.61 crore, respectively.
Therefore, the commission approved a reduction in the retail tariff for all categories.
Fixed charges to stay
However, JERC turned down the demand for removing fixed charges in the electricity bill.
In the wake of losses incurred due to the two-month lockdown in 2020, commercial units in the city had been demanding removal of the fixed charges, which are levied over and above the consumption charges. These charges range from ₹30 per kWh to ₹200 per kWh per month.
Notably, the UT administration is in the advanced stage of privatisation of its power department. Six companies are in fray to take over the electricity department.