PDD proposes substantial hike in power tariff for 2016-17 FY

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March 12:All categories of power consumers across the Jammu and Kashmir will have to pay much more every month from the next financial year as Power Development Department has proposed substantial hike in power tariff for the year 2016-17.
The proposal has been submitted to the Jammu and Kashmir State Electricity Regulatory Commission (JKSERC) as a part of petition for Annual Revenue Requirement for the 2nd Multi Year Tariff (MYT) Control Period FY 2016-17 to FY 2020-21.
Justifying the proposal of substantial hike in the existing power tariff, the Power Development Department has submitted that actual Annual Revenue Requirement for the FY 2014-15 was Rs 5726,92 crore but the Revenue assessed at existing tariff was Rs 1813.72 crore resulting into Revenue gap of Rs 3913.19 crore.
Similarly, as per Revised Estimates, the ARR for FY 2015-16 was to the tune of Rs 6,016.94 crore but the Revenue assessed at the existing rate is to the tune of Rs 2590.43 crore thereby leaving Revenue gap of Rs 3426.50 crore. Projecting Annual Revenue Requirement for the FY 2016-17 at Rs 6384.34 crore, the PDD has pegged Revenue assessed at existing tariff at Rs 2812.21 crore with Revenue gap to the tune of Rs 3572.14 crore.
“As such the Revenue gap at existing tariff will be Rs 3572.14 crore for the Financial Year 2016-17”, the PDD said in the petition, adding tariff revision for FY 2016-17 has been proposed to bring down the gap to Rs 3065.62 crore. With the revision in the existing tariff, the Power Development Department is expecting additional revenue of Rs 506.52 crore. About gap of Rs 3065.62 crore, the PDD said that the same will be met through budgetary support from the State Government.
As per the proposed tariff structure for FY 2016-17, the copy of which is available with EXCELSIOR, the PDD wants to increase energy charges per kWH to Rs 1.35 from the existing tariff of Rs 1.19 for Below Poverty Line category of consumers having consumption up to 30 units per month.
At present, power consumption up to 100 units per month is charged at Rs 1.54 per unit and between 101 units to 200 units per month, the rate is Rs 2 per unit while as between 201 to 400 units per month the rate is Rs 3 per unit. For consumption beyond Rs 400 per month, the rate is Rs 3.2 per unit.
However, the PDD has proposed Rs 2.27 per unit up to 200 units per month by deleting the slab of up to 100 units per month. For units between 201 and 400 per month, it has proposed Rs 3.41 per unit while as for consumption between 400 and 800 units the proposed rate is Rs 3.64 per unit. The PDD has also created new slab—over 800 units per month, which will be charged at Rs 4.20 per unit.
For unmetered consumers, the consumption up to ½ KW would be charged Rs 335 per month as against present rate of Rs 89 up to ¼ KW and Rs 295 between ¼ to ½ KW. Similarly, the PDD has proposed Rs 664 per month for consumption between ½ to 1 KW as against Rs 445 per month for consumption between ½ to ¾ KW and Rs 585 for ¾-1 KW per month.
As far as non-domestic/commercial metered category of consumers (single phase), till date the PDD is charging Rs 2.55 per unit up to 100 units per month, Rs 2.70 per unit for consumption between 101 and 200 units, Rs 3.9 per unit for consumption between 201 and 300 units per month and for consumption beyond 300 units per month the department is charging Rs 4.2 per unit.
The department has now proposed Rs 2.9 per unit up to 100 units per month, Rs 4.44 per unit for consumption between 101 and 300 units per month and Rs 4.78 per unit for consumption beyond 300 units per month. It has deleted the slab of 101 to 200 units per month.
For three phase connections, the present tariff is Rs 4.55 for all units but the department has proposed to increase the same to Rs 5.12. The fixed charges for single phase have been proposed at Rs 48 as against Rs 40 at present. Similarly, the fixed charges for three phase have been proposed at Rs 114 as against present tariff of Rs 95.
As fas as unmetered commercial connections are concerned, the department has proposed Rs 2192 for above one KW as against existing tariff of Rs 1925 for above one KW.
Even agriculture category of consumers has not been spared by the PDD, which has proposed Rs 5.42 per kVAH as against existing tariff of Rs 4.75 for above 20 HP. However, in the case of State and Central Government Departments, no hike has been proposed in the tariff despite the fact that several Government departments are the major defaulters of the Power Development Department.
“Now, it is to be seen as to whether J&K State Electricity Regulatory Commission accepts the proposal of the Power Development Department in totality or makes some modifications after inviting comments from the stakeholders on the proposal of the PDD”, official sources said, adding “the people are now pinning hopes on the Electricity Regulatory Commission for relief from the hike proposed by the PDD”.

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