BERC announces 5% hike in power tariff, BIA opposes it

Speed Post News Network

Patna : The Bihar Electricity Regulatory Commission (BERC) on March 21, 2018, announced an average 5 % power tariff hike for 2018-19 fiscal. It  has increased the power tariff by 40 to 60 paise per unit across all categories that includes rural, urban, commercial and industrial consumers. The new power tariff will be effective from April 1, 2018.
An official of Energy department of Bihar Government, however, said  government would announce a subsidy for power consumers after reviewing the tariff order.

Bihar Industries Association (BIA) on March 21 strongly objected to increase in Discoms Tariff Order for 2018-19 applicable from April 1, 2018. Industries in Bihar are already suffering due to financial crisis, stiff competition from other States, etc, it said adding now imposing additional financial burden on Industries by this hike in tariff is totally impractical and unfair.
The BIA said this year’s increase in tariff is impractical and unjustified as T&D losses under UDAY scheme has been decreased from 30% to 20%, benefit of which should have been passed on to the consumers by reducing the Electricity Tariff by minimum 10%, but surprisingly, it has been increased 45 paise to 60 paise per unit. The BIA wants the state government to immediately intervene in the matter.

“The BERC, having regard to its Annual Revenue Requirement (ARR) gap arrived at after prudent check and examination, has increased the existing retail electricity tariff approximately by 5% across all categories of consumers except High Tension Service category,” said BERC Chairman S K Negi.

For domestic consumer in rural areas, the BERC has approved tariff of Rs 6.15 per unit against the existing Rs 5.75 per unit (without govt subsidy) for first 50 units while it would be Rs 6.40 per unit against existing Rs 6.0 for next 50 units and Rs 6.70 per unit against Rs 6.25 per unit for above 100 units.

For urban domestic consumers, the BERC has approved Rs 6.15 per unit against existing tariff rate of Rs 5.75 per unit (without govt subsidy) for first 100 units while it would be Rs 6.95 per unit against current Rs 6.50 per unit for a slab of 101-200 units. The BERC has approved Rs 7.80 for a slab of 201-300 units against existing rate of Rs 7.25 per unit while it would be Rs 8.60 per unit above 300 units against the existing rate of Rs 8 per unit.