Electricity Dept moots 36% hike in domestic tariff, 48% in commercial

Sends proposal to the JERC.

The electricity bills for all categories of consumers are set to skyrocket if the Electricity Department has its way.

In its proposal to the Joint Electricity Regulatory Commission (JERC), the department has favoured a staggering 36 per cent hike in the domestic power tariff and 48 per cent in the commercial power tariff for the financial year 2013-14.

For the first time, imposition of fixed charges on the domestic consumers have also been proposed. In the last financial year, the department had proposed 45 to 50 per cent hike, and the power tariff had been hiked by around 27 per cent.

In its proposal, the Electricity Department has stated that in the year 2013-14, its expected expenditure is Rs 810 crore. The existing revenue is Rs 707 crore. Due to this, there would be a gap of Rs 103 crore between the revenue and expenditure. In order to fill this gap, the hike in the tariff has been sought.

As per the department, in the year 2011-12, there was a gap of Rs 154 crore in the expenditure and revenue. In the year 2012-13, this reduced to Rs 87 crore after the hike in the tariff last year. The total gap in three years is Rs 344 crore.

There are two lakh electricity connections in the city. Of these, 40 per cent are domestic connections, of which the majority of the consumers consume 400 units and above. Here the tariff is proposed to increase from Rs 4.4 per unit to Rs 6 per unit. Around 5 per cent domestic consumers use up to 150 units of electricity while 10 per cent fall in the slab of 150 to 400 units.

It has been proposed that fixed charges amounting to Rs 25 per kilo watt be imposed. Fixed charge is the minimum amount that has to be paid depending on the electricity load declared. On average, a house has 5 to 6 kilo watt load.

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