Discoms gearing up for 25% hike in tariff

Electricity consumers are in for a real shocker in 2014 as the power distribution companies (discoms) gearing up to demand 25% hike in tariff for the coming year. Things are going to worsen for the people who are already facing the brunt of power tariff hike due to fuel cost adjustment (FCA).

The discoms are likely to submit their average revenue requirement (ARR) details and seek increase in power tariff from the Madhya Pradesh Electricity Regulatory Commission (MPERC) by January 21. As per norms the MPERC seeks public opinions, and crosschecks the requirements before approving the final tariff hike for the financial year- the entire process is to be completed within 90 days of the submission of ARR projections by the companies.

Discom sources said that the companies will demand a hike of 23-25% hike in power tariff, however how much hike will be allowed, depends on the commission.

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