Assam Electric Regulatory Commission reduces power tariffs to 10-20 paisa per unit

 STAFF REPORTER

GUWAHATI: The AERC (Assam Electric Regulatory Commission) reduced the power tariff by 10–20 paisa per unit from the power tariff paid by consumers till February 2023. The new tariff will be effective on April 1, 2023.

In the case of fixed meter charges, the APDCL proposed an increase up to Rs 75 per KW/KVA per month. However, the AERC increased it by Rs 10. However, according to the AERC, "the commission accorded approval to an overall decrease of around 1.2 percent in the tariff for 2023–24 over the tariff for 2022–23, including existing FPPPA (Fuel and Power Purchase Price Adjustment) charges. The Commission has reduced energy charge rates for all categories, ranging from 10 to 20 paisa per unit".

According to AERC, the existing tariff for a domestic consumer who consumes up to 120 units per month is Rs 580. Under the revised tariff, he will have to pay Rs. 570. Likewise, for those who consume up to 240 units, the existing tariff is Rs 710. The revised tariff for such consumers will be Rs 700.

The APDCL proposed such a hike to make up the revenue gap due to the impact of provisions for DCRG (Death-Cum-Retirement Gratuity) under the National Pension Scheme, distribution loss, a hike in the price of natural gas in the international market, etc.

APDCL reported a higher distribution loss of 16.96 percent as compared to the 15 percent approved by the AERC. The higher distribution losses have resulted in a higher power purchase cost of Rs 116 crore, of which Rs 38.91 crore is passed on to the consumers. The AERC, after considering all representations, written submissions, and issues raised by stakeholders and the prayers of the utilities, has taken a conscious view while issuing the tariff order for utilities for the financial year 2023–24. "The Commission has taken the utmost care to protect the interests of consumers as well as utilities in arriving at its decision," the Commission reported.

The Commission found that the hike in the rate of natural gas as shown by the APDCL in the international market is less now.

Instead of bringing down the distribution loss and taking cost-cutting measures, the APDCL tries to impose the burden of their revenue gap on the consumers every year. APDCL also gets a huge amount in grants from the government every year. The State Government converted grants into equity of Rs 862 crore, Rs 317 crore, and Rs 348 crore in 2021–22, 2022–23, and 2023–24, respectively, for the APDCL.

The AERC has increased the fixed meter charge by Rs 10 per KW for all categories to improve the recovery of fixed meter costs through fixed charges and has reduced the energy charge rates for all categories ranging from 10 paisa to 20 paisa per KWH to meet the overall revenue requirement of APDCL.

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