MP power firm calls for significant hike in power tariff
The Madhya Pradesh Power Management Company on Monday proposed an average tariff hike of 24% for all categories of consumers in the next financial year, hoping to raise Rs. 29,379 crore to meet its annual revenue requirement.
The proposal was placed before the MP Electricity Regulatory Commission (MPERC) at Bhopal in the joint annual revenue requirement (ARR) and tariff petition for the financial year 2015-16 for three discoms. There was no such power tariff hike proposal for the current financial year.
“For domestic consumers the tariff hike is proposed to 19.7%, while for agriculture consumers it is 20.19%,” said Manu Shrivastava, the managing director of MP Power Management Company.
Ensuring round-the-clock power supply across the state would need a projected 50,250 million units of electricity for the 2015-16 fiscal. It would cost Rs. 5.85/unit, Shrivastava said.
The cost of power in 2009-10 was much lower at Rs. 3.22 per unit. Over the years, input expenditure such as coal and oil have become dearer. The cost of coal has gone up by 98%, oil by 57% and railways tariff — which power firms rely on for hauling the fuel — by 51%.
Over the years, Shrivastava said, the power regulator had allowed an average of 10.66% hike.
For domestic customers: 19.7%
For industries (low tension): 29.9%
For bulk residential user: 17.8%
For agricultural customers: 20.19%