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Patna : Bihar Industries Association (BIA) on April 1, 2017, welcomed the announcement of the state government of allowing electric subsidy to all categories of power consumers of the state to rationalize the recent huge increase in power tariffs across all consumer categories by Bihar State Power ( Holding) Company Limited (BSPHCL).

Commenting on recent increase in power tariff and announcement of electricity subsidy by the government, BIA President Ram Lall Khetan said that the state government has announced subsidies directly to consumers in an effort to rationalize the recent huge increase in power tariffs across all consumer categories. ” We would like to thank CM Nitish Kumar and Bihar government for the said subsidy which was most necessary following the huge and sudden increase in power tariffs in the state. Such direct transfer of benefit of subsidy to the consumer will increase transparency and will ensure effective utilization of the subsidy so given by the government,” Khetan said.

BIA Vice President A K P Sinha said that the increase in Industrial tariffs even after the subsidy announced by the state government is untenable as the Power Purchase Cost of the BSPHCL has reduced compared to earlier years. The reason behind huge increases in tariffs has been that the BERC has allowed a Distribution Loss Trajectory (DLT) of 28% compared to 18% earlier to the BSPHCL in the current fiscal.

Arvind Kumar Singh, BIA Secretary General, said at present the BSPHCL is purchasing power of Rs 900 crore per month from various sources whereas realization through sell of power is Rs 600 crore monthly, a loss of Rs 300 crore monthly. Now government is going to bear Rs 250 crore per month through subsidy, the actual losses will be just Rs 50 crores to BSPHCL, he said. He requested to the government to pay entire loss of Rs 300 crore and ask BSPHCL to charge the consumers at existing rate of power tariff.  He further requested to the government to promote access of power by consumer through open access mode, reduce the electricity duty cost from 6% to 5-10 paise per unit which is an additional burden on the consumers over and above electricity tariff rate.




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