JERC critical of lack of energy audit,rejects petition for power hike

It has pointed out the differences in the revenue gap calculated by the Electricity Department and its own calculations.

Written by Express News Service | Chandigarh | Published: April 19, 2013 1:23 am

While rejecting the petition of the Electricity Department about power tariff hike,the Joint Electricity Regulatory Commission (JERC) has taken serious note of the lack of a proper energy audit,arbitrary calculation of the transmission and distribution (T&D) losses and the lack of proper planning for the future. It has pointed out the differences in the revenue gap calculated by the Electricity Department and its own calculations.

Preparing the petition for a hike in the electricity tariff by around 48 per cent,the Electricity Department had said there was a gap of Rs 344 crore in the net revenue requirement and the revenue that would be generated from sales at existing tariff. However,as per calculations of JERC,there is a surplus revenue of Rs 1.45 crore.

While the Electricity Department had projected the revenue requirement for the financial year 2013-14 as Rs 809.09 crore and the revenue collection as Rs 706.89 crore,JERC has calculated this as Rs 682 crore and Rs 716 crore respectively. The need for any hike in the tariff was negated by JERC for the current financial year.

The commission has taken serious note of the concern expressed by stakeholders on quantum of power purchase. It is stated that the Electricity Department did not make long-term power purchase assessment to meet its base requirement and depends on short-term power purchases to meet the present shortages.

The commission has taken serious note of the non-compliance with its directive for conducting a detailed load forecasting study for short-term (2-5 years),medium term (7-10 years) and long-term (15-25 years).

The Electricity Department has further been asked to get an energy audit done to substantiate its estimate of T&D losses.

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