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November 22, 2013

AERC approves 2.4 pc hike in power tariff...

 

AERC approves 2.4 pc hike in power tariff...

The Assam Electricity Regulatory Commission (AERC) today announced the multi-year power tariffs for the financial years of 2013- ’14, 2014- ’15 and 2015- ’16, which will come into force from December 1.


The Commission has approved of an average tariff increase of 2.4 per cent for the financial year of 2013-’14 and has retained the fixed/demand charges at the existing level for all categories.

However, through its tariff order, the Commission has retained the tariffs of the ‘Jeevan Dhara’ category and the first slab of the ‘Domestic-A’ category (first 4 units per day or first 120 units per month) at the existing levels, with the intention of reducing the burden on these categories, and also since the level of cross-subsidy is within limits.

It needs mention here that the Government of Assam has assured a Rs 200 crore tariff-related subsidy and it has particularly mentioned Rs 1.10 per unit subsidy for the ‘Jeevan Dhara’ category and Rs 0. 70 per unit for the ‘Domestic-A’ category for the first four units per day, that is 120 units per month. This will benefit 11.27 lakh ‘Jeevan Dhara’ category consumers and 15.28 lakh ‘Domestic-A’ category consumers, said AERC sources.

In real terms, the tariff for these two categories will actually be lower than the existing tariff on account of the State Government subsidy being provided to them, the sources said. It has reduced the tariffs for the ‘Public Water Works’ category (both HT and LT) and ‘Public Lighting.’

The Commission has also reduced the tariffs for the ‘Low Tension (LT) General Purpose Supply’ category since this category, which primarily includes premises of charitable organisations, places of worship, small government offices, etc., may not be required to subsidise other categories. Further, the Commission has retained the existing tariff differential in the time of day (TOD) tariffs for different time slots during the day so as to ensure that the demand side management (DSM) and energy conservation measures are continued.

The Commission has approved of a marginal increase, that is 2.4 per cent, in tariffs of certain categories of consumers like high tension (HT) industries, tea, coffee and rubber industries, ‘Domestic-B’ category (above 5 KW- 20 KW load), while keeping in view the overall objective of maintaining the cross-subsidy within the limit of plus-20 per cent, said the sources.

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