Team Herald
PANJIM: The Joint Electricity Regulatory Commission (JERC) has recommended 5.31 per cent increase in electricity tariff, as against 3.84 per cent hike proposed by the State government.
As per the power tariff order issued by JERC, the hike is proposed for fixed as well as energy charges for both domestic and commercial connections, including low and high tension consumers.
The hike for domestic consumers is between 10 to 25 paisa per unit. The fixed monthly charge for three-phase domestic connection has been increased by Rs five and for low income group by Rs 10.
JERC has said that with the hike, only a part that is Rs 75.6 core of the total electricity department’s revenue gap of Rs 342 crore will be recovered from the consumers. The rest will be recovered through budgetary support to the State Electricity Department from the government.
“A total of Rs 75.6 crore is expected to be recovered through the tariff hike, while the remaining Rs 167 crore will be recovered through budgetary support,” the Commission said.
“In case this revenue gap had to be entirely fulfilled by revenue from consumers, then it would have demanded an overall average increase of 23.5 per cent,” it added.
“In case the government had not provided budgetary support, an average increase of 17.24 per cent over and above the approved tariff increase would have been required, which would have led to a tariff shock for consumers,” the Commission maintained.
The Commission has asked the department to be careful and not to be over dependent on government’s budgetary support. It has advised the department to prepare itself for repercussions in case government withdraws budgetary support in future.
State government in its annual tariff petition, submitted in January, had proposed hike of 3.84 per cent, with effect from April 1. It had also computed a revenue gap of Rs 242.68 crore for the financial year 2020-21.
Due to nationwide lockdown in view of COVID-19 pandemic, the tariff order is yet to come into force.
