Deptt proposes hike in electricity tariff

GANGTOK, 20 Jan: Consumers in Sikkim are in for another hike in electricity charges in the face of losses in the field of energy and power supply. Should the State Electricity Regulatory Commission approve the recommendation of the Power Department, the public will have to shell out more for each unit of electricity they consume.
The state government is suffering huge losses when it comes to transmission and distribution losses. In fact, as per the Power Department the estimated annual T&D and other losses of the state for 2013-14 have been projected at 55.87%. The net revenue requirement of the Power Department for 2012-13 was estimated at Rs. 297.84 crore; against this, revenue from tariff and sale of electricity [outside Sikkim] is estimated at Rs. 108.56 crore causing a shortfall of Rs. 189.28 crore.
For the year 2013-14, the projected net revenue requirement is at Rs. 336.81 crore; against this, the projected revenue is at Rs. 112.68 crore thereby resulting in a projected loss of Rs. 224.14 crore.
Faced with this shortfall, the Department has proposed to cover the revenue gap ‘partly’ through additional revenue from the proposed tariff revision. Domestic consumers are liable to face a hike of anywhere between 5 paise and 20 paise per unit depending on the amount of electricity they consume.
It has been proposed that per unit charge for upto 50 units be increased to Rs. 1.15 from the existing Rs. 1.10; for consumption between 51 to 100 units the proposed hike is to Rs. 2.35 from the existing Rs. 2.25; for consumption between 101 -200 units the proposed tariff is Rs.3.60 from Rs. 3.45; from 201 to 400 units it is proposed that the revised tariff be Rs. 4.35 per unit from the existing Rs. 4.15 and for above 401 units the new tariff proposed is Rs.4.60.
The rate of increase for commercial consumption is slightly higher ranging from 40 paise per unit to 50 paise per unit.
About a couple of years back there had been a hike in power tariff by the State government, but despite the hike the department has not met its revenue targets. In fact despite revenue from sale of electricity outside to other states estimated at Rs. 20.33 crore, the State government is suffering losses. The state itself does not have a large electricity consumption or requirement given its small population but apparently the Power Department has not been able to optimize its revenue potential or cut down on its T&D losses thereby putting the liability on the consumer.