To cut losses, HPSEB for increase in energy pricing

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Shimla: With Himachal State Electricity Board (HPSEB) having implemented a pay revision for it employees, domestic consumers are in for an increase of 0.25 paisa per unit of energy consumption if the proposed tariff petition for 2011-12 is accepted by the regulator.

A spokesman of the HP State Electricity Regulatory Commission (HPSERC) stated that the board’s new tariff petition was under consideration.

The board, which technically has been dismembered and converted into a company, projects employee costs that stood at Rs 729.65 crore in 2009-10, increased to Rs 980.75 Cr in 2010-11 and is expected to touch Rs 1069.14 Cr in 2011-12.

With domestic consumers consuming 1202 million units (MU) of power of the total sales of 6267 MU made in 2010-11 that is billed at rates varying between Rs 1.80 to Rs 3.45 per unit of consumption the new tariff petition proposes to increase the rates for the 150 unit consumer from existing Rs 2.20 to Rs 2.45 (12%) and for the 151 plus unit consumer from existing Rs 3.45 to Rs 3.70 (7%), the petitions spell out.

No hike is proposed for the below poverty line consumer who will continue to get power at the subsidized rate of Rs 1.80 per unit.

A steep hike for small and medium supply consumers is in store if the proposed tariffs are accepted by HPERC.

For various categories among the small and medium consumers, where the prevailing energy consumption pricing ranges from Rs 2.60 to Rs 3.70 per unit, the new proposed rates range between Rs 3.20 to Rs 4.18 per unit. Energy prices for 4 sub categories in the group could go up by as much as 39 to 48 %, if accepted by the commission.

The board for 2011-12 projects revenue requirements at Rs 3308.29 crore and hopes to bring the down losses from sale of power from Rs 604.56 Cr at the existing rates to Rs 45.92 Cr if the new rates are approved by the regulator.

By increasing energy prices across various categories including the domestic consumer, the board project to increase revenues by as much as Rs 558.63 crore, whereas revenues from sale of power to other states is expected to come down from Rs 150 crore in 2010-11 to Rs 95.28 crore in 2011-12.

Editor-Reporter with Hill Post, Ravinder Makhaik as a journalist has for over two decades worked for India’s leading newspapers and television networks.

2 Comments

  • Amit says:

    Being a power producing state , tariffs should be lowest.
    Instead of incresing the burden on state population , electricity board should charge more from selling electricity to other states.

    • Rupesh Gupta says:

      I agree with Amit’s comments. We have number of projects which are undertaken by the electricity board. We should charge more by selling it to other states. This will decrease the burden for common man who enjoys the low tarrof as compared to neighbouring states.

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