Power Tariffs

Expelled AIADMK leader V K Sasikala lambasted the DMK government in the state over the revised power tariff, which came into effect recently, saying it will affect all sections of the people. Sasikala was addressing a meeting after arriving here on Tuesday night to a warm reception by a section of AMMK and AIADMK volunteers. She demanded that the state government roll back the electricity tariff revision. In July, Electricity Minister V Senthil Balaji announced a hike in the tariff for TANGEDCO consumers, proposing an increase of Rs 27.5 (per month) for those using up to 200 units and 65 paise per unit hike for railways and educational institutions. Sasikala, the former aide of late Chief Minister J Jayalalithaa, also stressed on the importance of strengthening the AIADMK to capture power in Tamil Nadu. "To combat the DMK and to capture power in Tamil Nadu, I will work hard to strengthen the AIADMK," she said.

This has to be done to avoid power shortage as domestic coal supply is unable to match the electricity companies' demand for the dry fuel, says R K Singh

The lack of market reform in electricity pricing has limited states' ability to expand capital expenditure on the critical transition to clean energy

The overall average increase accounts for 35 paise per unit for FY 23, which accounts to increase by 4.33 per cent

Punjab is going to the Assembly polls early next year

Goa Power Minister Nilesh Cabral and his Delhi counterpart Satyendar Jain on Monday had a much anticipated public face-off over the virtues of the power tariff structures in place in the two states

Here's a selection of Business Standard opinion pieces for the day

Power ministry says 'an unworkable time schedule' will increase tariffs

SECI is a fully-owned subsidiary of the Ministry of New and Renewable Energy entrusted with the tendering process of renewable projects in the country

Hospitals, nursing homes and diagnostic centres get 5% off on energy bill; extra relief for charitable institutions

The industry body has written letters to 26 states and two union territories seeking relief

The revised tariff will generate additional revenue of Rs 792 crore in the last two months (February and March) of the current fiscal year

Andhra Pradesh should maintain the sanctity of contracts

Congratulating Delhiites, the chief minister said the city has the lowest power tariffs in the country and the only place with 24x7 electricity

The Tata Power, Adani Power and Essar Power plants had bid for a fixed tariff to win the projects, but those tariffs turned unviable after Indonesia changed its coal pricing regulations

The tariff policy under the Electricity Act is the guiding principle for setting rates

Bihar, Maharashtra, Madhya Pradesh and Jharkhand are among the states that announced higher rates for 2017-18. Bihar led with a 20 per cent rise, across brackets. It, however, also introduced direct subsidy transfer for some sections of consumers, thereby reducing the impact on the revenue of power distribution companies (discoms). Jharkhand's raise was 12 per cent, Madhya Pradesh's 9.5 per cent and Karnataka raised by 8.1 per cent. The central government's programme for debt restructuring of state discoms underlines the need for regular rate revision. Ratings agency ICRA says the overall subsidy dependence of discoms for 2017-18 would be Rs 81,000 crore, an increase of around eight per cent over the previous year. "The increase in the subsidy requirement is predominantly driven by first, the subsidy, and concessional tariff (rate) announcements in states and/or continuation of the subsidised nature of tariffs by state governments for certain consumer categories," says Sabyasachi ...

Discoms accumulated losses of about Rs 4.3 lkh cr till March 2015; need to debt to cover costs

After three years, the power tariffs delivered a big shock in Bihar. The Bihar Electricity Regulatory Commission (BERC) approved an unprecedented 55 per cent increase in electricity tariff. The hike is expected to boost distribution companies' kitty by Rs. 4,700 crore. From the next month onwards, the consumers would now have to shell out Rs. 2.75 to Rs. 3.65 per unit more under the approved tariff for the next fiscal. "The DISCOMs have proposed overall hike of about 84 per cent in the tariff for FY 2017-18, whereas we have approved overall increase of about 55 per cent without taking state government's subsidy into account," said BERC chairman S K Negi. "However, if the state government extends subsidy support to BPL and rural consumers as agreed in the Ujjwal DISCOM Assurance Yojna (UDAY), the increase may come down to around 28 per cent only," he added. However, even after the adjustment of subsidy into the revised tariff, it would still be sharpest ever increase in the power ...

This is thanks to increase in states' levy of cross-subsidy charges