51 paise per unit power hike sought

Proposal to introduce green cess as per Renewable Energy policy

Amidst several speculations regarding the tariff hike, the power companies along with KPTCL have finally filed their Expected Revenue for Consumption (ERC) for the year 2009-2010, by seeking an increase of about 20 per cent for all category of consumers to meet the deficit of Rs 3,700 crore rupees. Apart from this, the State, for the first time in the country has proposed a green cess, one of the the key recommendations from Renewable energy policy to bring down the carbon emissions.

Accordingly, the ERC says that the power sector is facing a deficit of 92 paise per unit, but has decided to avoid a rate shock. The sectors have decided to seek a revision of 51 paise of which 10.22 paise will go to KPTCL as transmission charges.

The present tariff rates, a fallout of tariff revision- 2006, stands at Rs 4.15 for the first hundred units for LT 2B (domestic consumers) and Rs 4.65 for next hundred units consumption and Rs 4.90 exceeding 200 units and Rs 5.25 for exceeding the capped consumption.

Permanent tariff

For the HT 2A category users, the present tariff is Rs 3.80 per unit and for those consuming beyond this limit, is Rs 4.30 per unit. For the HT 2A category users, the present tariff is Rs 3.80 per unit. Exceeding this, the consumers will have to pay  Rs 4.30 per unit. The multi-year tariff of 2007 upto 2010 is pending before the Electricity Appellate Tribunal.

Accordingly, the power sectors have said that this tariff has led to a deficit of over crore rupees as the present revenue stands at Rs 11,000 crores. Through this tariff, the power companies aim to generate an additional revenue of 1,800 crore rupees. The companies have said that, of the deficit of 3,700 crore rupees Rs 1,400 crore will be treated as regulatory assets, which will be recovered in future tariffs.

Green cess

The power companies for the first time in the country have sought a levy of green cess of five paise per unit to the Commercial as well as the Industrial category.

The companies have stated that it will be used to develop green energy and take up development works across the State to reduce the carbon emission into the atmosphere.

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