Tuesday, Dec 23, 2014

City spared power tariff hike as JERC rejects UT dept’s petition

power-m For the last two years, the department has been dilly-dallying on the issue of an external audit.
By: Express News Service | Chandigarh | Posted: July 18, 2014 3:28 am | Updated: July 18, 2014 9:21 am

The city has been spared an electricity tariff hike, as the Joint Electricity Regulatory Commission has rejected a petition of the UT Electricity Department for a review of its tariff order dated April 11, holding that no review is required.

In April, the JERC had not allowed a tariff hike for the second consecutive year because the department’s accounts were not audited. The department had sought a 40 per cent hike across the board, claiming that it was suffering losses, but the commission held that there was no loss.

In its petition, the department had sought a review of the manner in which the calculations for estimating the losses had been done. In its order last week, the JERC reiterated its instructions to the department to first get its accounts audited by an external agency.

For the last two years, the department has been dilly-dallying on the issue of an external audit. Now, it has short-listed two agencies after inviting tenders.

Another issue raised by the Electricity Department was the hiking of the average cost of supply for the financial year 2013-14 from Rs 4.61 per unit to Rs 5.33 per unit. The commission, in its order, has stated, “It has already been detailed in the tariff order that the cost of power purchase has been considered on approved transmission and distribution losses and, accordingly, computed.

The petitioner is now submitting the revised average cost of supply on the actual power purchase which cannot be considered in the review.”

The JERC also turned down the plea of the Electricity Department to allow charging of fuel and power purchase cost adjustment (FPPCA). The department had also said that it should be allowed to charge a delayed payment surcharge from permanently disconnected consumers. The JERC has ordered that “the petitioner may come up with a separate proposal for amendment of relevant provisions of the supply code in this context, along with a detailed justification for the rationale for the proposed amendment”.

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