KPDCL proposes power tariff hike; petitions JERC

The hike proposed by KPDCL is as for metered areas upto 100 units per month traffic is Rs 2 kWh which is currently Rs 1.69, from 101-200 units proposed hike is Rs 4 currently Rs 2.20, 201-400 units per month proposed hike is Rs 5 currently it's 3.30, above 400 units Rs 15 which is right now Rs 5.50.
KPDCL proposes power tariff hike; petitions JERC
A woman cooks even as she holds candle with other hand amid absence of electricity. [Image for representational purpose only] File: Mubashir Khan/ GK

Srinagar: Kashmir Power Development Corporation Limited (KPDCL) has petitioned Joint Electricity Regulatory Commission (JERC), proposing a hike in power tariffs by over 12 percent for the current year.

As per the petition filed by KPDCL before JERC, the power discom has prayed that for the last six years there has been no power tariff revision as a result of which KPDCL is facing a revenue gap.

As per the petition, KPDCL has proposed an average tariff hike of over 12 percent.

The hike proposed by KPDCL is as for metered areas upto 100 units per month traffic is Rs 2 kWh which is currently Rs 1.69, from 101-200 units proposed hike is Rs 4 currently Rs 2.20, 201-400 units per month proposed hike is Rs 5 currently it's 3.30, above 400 units Rs 15 which is right now Rs 5.50.

For Unmetered areas upto ¼ kW proposed hike is Rs 200 from 99, above ¼ KW upto ½ kW its Rs 400 from 325, above ½ kW Rs 600 from 490, above ¾ Rs 800 from 650, above 1 kW to 2 kW Rs 800 plus Rs 200 for every additional ¼ kW. Above 2 kW Rs 1600 plus Rs 500 for an additional ¼ kW.

For commercial/non-domestic consumers under single upto 100 units/month Rs 3.5 kWh from Rs 2.81, 101-200 Rs 5 from the current rate of Rs 2.97, 201-300 Rs 5 from Rs 4.29, above 300 units per month Rs 5.10, fixed charges in this category has also been proposed to be increased.

As per the petition, the KPDCL has mentioned that in the year 2019-20, the cumulative revenue gap was to the tune of Rs 1604.95 crore while the same increased to Rs 5890.76 crore in the year 2020-21.

Similarly, the gap further increased to Rs 9898.63 crore during the financial year 2021-22 and at the existing tariff, the cumulative revenue gap will increase to Rs 13145 crore during the current financial year (2022-23).“The proposed tariff would lead to increase in revenue by Rs 243.60 crore”, the petition said.

"It is submitted that the last tariff hike of 13.5 percent was approved by erstwhile J&KSERC on 07.10.2016. since then, JKPDD could not file tariff petition with tariff proposals because the positions of chairman and members remained vacant for about 2 years. Although erstwhile JKSERC was constituted later on but was wound up at the time of reorganization of J&K on 5th August 2019."

"The last tariff revision was carried out by the erstwhile JKSERC in October 2016 for the financial year 2016-17 and there has been no tariff revision for the years 2017-18, 2018-19, 2019-20, 2020-21. It is observed that the cumulative revenue gap including carrying cost is estimated to increase over the years ( till the financial year 2021-22 to Rs 9898 crore. One of the reasons for the increase in revenue gap is an inadequate tariff to cover the costs," the petition reads.

"Further, the tariff for various consumer categories prevailing in the UT of J&K is compared with the tariff charged for the same/similar consumer categories in the neighbouring states of Himachal Pradesh, Uttarkhand, Punjab, Haryana and Delhi. From the benchmarking exercise, it is clear that the tariff charged by KPDCL to its consumers in the License area is the lowest for almost all consumers categories compared to the tariff charged by distribution utilities in the neighbouring states of UT of J&K. Thus there is a need to increase the tariff in-line with benchmark tariff observed in the neighbouring states."

KPDCL's power tariff petitions have been put in the public domain for inviting objections and suggestions and the entire exercise will be completed by the end of this month after that the Commission will take a final decision on the proposed tariff hike.

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