Chandigarh: Electricity dept proposes power hike up to 35 per cent

The proposal was submitted before the commission on Monday and the new rates will be applicable only after getting approval from the commission.

Written by Vinod Kumar | Chandigarh | Published: March 1, 2016 3:56 am
electricity-reuters-759 Photo for representational purpose.

The Chandigarh electricity department has submitted Aggregate Revenue Requirement (ARR) and tariff petition to Joint Electricity Regulatory Commission (JERC) for enhancement in the existing tariff up to 35% for the next financial year in different slabs under the Multi-Year Tariff (MYT) system which will come into force from April 1.

The proposal was submitted before the commission on Monday and the new rates will be applicable only after getting approval from the commission. The administration had last increased the tariffs in April 2012.

In the domestic category, the electricity department has proposed a hike from Rs 2.30 to Rs 3 in the slab of 0-150 units. It has proposed increase from Rs 4.20 to Rs 5.50 in the slab of 151-400 units. In the commercial category, increase from Rs 4.30 to Rs 5.70 in the slab between 0-150, Rs 4.50 to Rs 5.95 in the slab of 151-400 and Rs 4.70 to Rs 6.20 in slab above 400 units has been proposed.

Gap stands at Rs 1,127crore

With no revision of tariff in the last three years, the gap between revenue and expenditure stands at Rs 1127.69 crore. The commission has been turning down tariff proposals on grounds of failure of the department to get commercial audits done, which is mandatory.

However, the department has finally got the commercial audit done. Earlier accounts of the department were audited along with those of other departments of the Chandigarh administration whereas, as per norms, the department has to get its accounts audited separately.

As the revenue gap for previous years is very high which require substantial tariff revisions, the department has urged the commission to device a mechanism for recovery. In the petition, the department has pointed out that the projections for ARR and revenue at existing tariff for the control period 2016-17 is inadequate and shall lead to additional revenue gap during the said period.

Therefore, CED has proposed revision in tariff across categories for meeting the revenue gap computed for financial year 2016-17.

UT superintending engineer MP Singh said that the commission would hold a public hearing session on March 18 for discussing the proposed tariff with the general public.

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