UT proposes over 19% hike in power tariff

Posted On : June 13, 2024

Two days after poll results, the UT electricity department has proposed an average increase of nearly 19.44% in the existing power tariff for the financial year 2024-25.

Through a petition, the department has requested the Joint Electricity Regulatory Commission (JERC) to approve the revised tariff (see box) which is expected to generate a revenue of ?1,059.03 crore.

Last year, JERC rejected the administration’s proposal of a 10% hike in the power tariff.

In 2022-23, the commission had approved an increase of 25 paise in retail tariff up to 150 kWh (kilowatt-hour) per month. Before that, the last increase in the domestic and commercial electricity tariff was effected in 2018-2019.

For the financial year 2024-25, in the domestic category, the department has proposed a hike in fixed charge from ?15/kW/month to ?40/kW/month, apart from an increase in the tariff for 151-400 and 401 and above slabs.

In the commercial low-tension (LT) category, the department has suggested a hike in the fixed charge for a single phase from ?25 to ?50.

However, no increase has been proposed in the slab of 0-150 units and 151-400 units, which remain at ?4.50 and ?4.70, respectively. In the slab of 401 and above, the department has proposed a hike in the fixed charge for three phases from ?100 to ?130 and an energy charge from ?5 to ?6 per unit.

In the commercial HT category, the department has proposed that the fixed charge be increased from ?100 to ?130, and the energy charge from ?4.50 to ?5 per unit.

In both large and medium industry categories, the department plans to hike the fixed charge from ?200 to ?240. In the energy charge, the department has proposed a hike from ?4.50 to ?5 per unit for large industry and ?4.20 to ?4.35 per unit for medium industry. For small industries, the fixed charge is proposed to be taken up from ?30 to ?100 and the energy charge from ?4.30 to ?4.50. For the public lighting system managed by MC, the department has recommended that the fixed charge be increased from ?100 to ?160 and the energy charge from ?4.80 to ?5.60 per unit.

Similarly, for advertisement boards, neon signboards, and billboards (apart from advertisement boards installed on commercial establishments and charged under the commercial category), the department has proposed a hike in the fixed charge from ?150 to ?250 and energy charge from ?6.40 to ?6.80.

For bulk supply of power, the department has recommended a jump from ?150 to ?250 in the fixed charge and energy charge from ?4.20 to ?4.60. A hike from ?3.60 to ?4 is planned for EV charging stations.

As per 2022-23 financial year data, the city has a total of 2,34, 269 consumers, including 2,01,435 domestic-LT, 26,559 commercial-LT, 493 commercial HT, 95 large industry supply, 1,488 medial industry supply, 1,538 small industry, 121 agriculture, and 1,551 public lighting, etc.

The department has stated that the number of total consumers will increase to 2,38,255 in the 2024-25 financial year.