For third year in the row, the Joint Electricity Regulatory Commission (JERC) has rejected a petition of the UT Electricity Department for increase in power tariff for 2015-16 because the department’s accounts were not audited.
The department had sought a 15 per cent hike across the board, claiming that it was suffering losses, but the commission rejected it.
The commission has however accorded the approval to the department to submit the properly audited accounts on the commercial accounting principle by September 30. The department officials said that tendering process to appoint consultant to prepare accounts on commercial accounting principle and fixed asset register is completed and Letter of intent to successful bidder has been issued.
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The commission however stated in its order that that it did not find any merit in the department’s current submission and hence had not considered any revision of losses as approved by the Commission.
Further it has directed the board to bring down its T&D losses.
It said that Chandigarh is a Metropolitan area and T&D loss in Metro politan areas such as Ahmedabad area are only 7 to 8 %. But here in Chandigarh, it is much hire. Against its projection of T& D losses at 14.5 %, the Commission has approved the T&D loss level at 13.75%, with 0.25% reduction over the approved estimated losses for 2014-15 “The commission has taken into consideration the difficulties expressed by the department and reduced only 0.25% instead of T&D loss trajectory of 0.5%, though as per the recommendation of Abraham Committee, the reduction should be 1%, it added.
Further, the commission also allowed the chandigarh administration for gross power purchase of 1874.64 MU against 1875.87 MU projected by the electricity department “The power purchase cost approved is Rs. 647.12 Crore against Rs. 719.99 Crore, read it order