Haryana Discoms drop proposed tariff hike...

 

For those keeping their heaters and blowers packed away this winter, fearing high electricity bills with another tariff hike, the state power discom brings warming news.

Keeping in mind the present political current, state electricity distributors have decided to keep the tariff static for the ensuing financial year. However, the discom made no announcement on inflated bills and the 21% Fuel Surcharge Adjustment (FSA) at the press conference here on Monday.

But the move might be considered by some as motivated by political aspirations, since the Haryana Electricity Regulatory Commission (HERC) may not hold on to its word in case of a change in government after state elections due this year. In addition to that, pressing issues actively advocated by civil society bodies - the "unjustified" inflated bills and 21% FSA - did not find space on the commission's agenda.

Yet, the good news remains that Haryana will stick to its current power tariff, despite a proposed hike in neighbouring states like Punjab, Rajasthan and Uttar Pradesh. "In the last three years, there has been an annual tariff hike in Punjab (10%), Delhi (17.2%), Rajasthan (17.8%) and UP (16.5%). The tariff in Haryana was also hiked in March last year by the HERC by 13%. But there has been no rise after that. In contrast, Punjab has proposed an 11% hike already," said Principal Secretary (Power), Devender Singh. Tariff for domestic consumers will be Rs 2.98 minimum (up to 40 units/month) and Rs 5.98 maximum, he added.

Comparing the situation with Delhi, Singh said, "The average AT&C losses in Delhi are less than 15%, while in Haryana, AT&C losses are over 30%. But still the annual hike has been lower than in Delhi because we are state-owned. A private company operates in Delhi."

Explaining the move, a senior DHBVN official said, "States having low distribution losses and lesser purchase and distribution cost have higher tariff than Haryana, and are still proposing a hike in tariff for the next financial year. The maximum level of tariff in Haryana for domestic consumers is Rs 5.98/unit compared to Rs 6.42/unit in Punjab, Rs 6.16/unit in Delhi." The average cost in Haryana is Rs 3.95/unit, as compared to Rs 3.67 in Punjab and Rs 3.92 in Delhi.

The official also said that in the past one year the discoms have invested over Rs 1,000 crore to strengthen the distribution system. "In order to supply more power with greater reliability, the discoms have planned a capex of about Rs 5,000 crore over the next 3-4 years for which integrated planning has already been initiated," he added.

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HERC slaps Rs 4 lakh penalty on 2 discoms, MDs...

 

In an exemplary move, the Haryana Electricity Regulatory Commission (HERC) has slapped a fine of Rs 1 lakh each on two power distribution companies (discoms) and their managing directors (MDs) for allegedly misguiding it in their annual revenue report (ARR) for 2010-11. The proceedings, conducted on Thursday, have also put a scanner on the short term purchase (STP) of the two discoms.

The two-member commission comprising Tej Singh Tewatia and Rohtash Kumar announced the decision during a public hearing called by HERC to finalise the ARR submitted by Uttari Haryana Bijli Vitran Nigam (UHBVN) and Dakshin Haryana Bijli Vitran Nigam (DHBVN). The proceedings were conducted at the commission's office in sector 4 of Panchkula, which saw a marathon session of arguments by Anurag Aggarwal and Vijayander Singh, the MDs of UHBVN and DHBVN respectively. Nevertheless, the duo — senior IAS officers — was categorically directed to pay the fine from their personal accounts.

The hearing began with the MDs presenting their ARR and inviting the ire of Tewatia, who said both the companies have added loses of around Rs 7,634 crore for 2008-09 and 2009-10 in the report prepared for year 2010-11. "With this, they have tried to misguide the commission. As far as short term purchases are concerned, the electricity was bought at the rate of Rs 10 per unit at a time when it was easily available for Rs 2.50 per unit. It really calls for a probe. Secondly, this cannot be added as fuel surcharge account (FSA), as mentioned in ARR," he said. He went to the extent of claiming that he suspected goof-ups in deals which were very much within the knowledge of the chief minister and the power minister.

This was besides various concessions announced by the government's move offering certain relaxations to fisheries, horticulture and women consumers announced by Haryana government, attracted the commission's ire.

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