Electricity consumers are in for a real shocker in 2014 as the power distribution companies (discoms) gearing up to demand 25% hike in tariff for the coming year. Things are going to worsen for the people who are already facing the brunt of power tariff hike due to fuel cost adjustment (FCA).
The discoms are likely to submit their average revenue requirement (ARR) details and seek increase in power tariff from the Madhya Pradesh Electricity Regulatory Commission (MPERC) by January 21. As per norms the MPERC seeks public opinions, and crosschecks the requirements before approving the final tariff hike for the financial year- the entire process is to be completed within 90 days of the submission of ARR projections by the companies.
Discom sources said that the companies will demand a hike of 23-25% hike in power tariff, however how much hike will be allowed, depends on the commission.
Managing director the Madhya Pradesh power management company, Manu Shrivastav said, "We have sought time till January 21 from MPERC and companies are currently calculating the ARR and based on it we will file demand for hike."
The companies cumulatively projected Rs 20,599 crore in 2013-14 and demanded a tariff hike of 20-25% percent but MPERC allowed just .77% hike. Requesting anonymity an official of a company attributed the low increase in power tariff in year 2013-14 to the upcoming state assembly elections. It is more likely that if the tariff rates for this financial year are approved by MPERC before the Lok Sabha elections, the companies will again be at the loosing ends, he added.
