Increments in power tariffs in India have always been a contentious proposition and there is more politics than economics involved in it . This is because distribution companies as well as regulators are susceptible to political influence .
The consequences are there for everyone to see : distribution utilities are marred in under realization and internal inefficiencies which severely dent their profitability. The cumulative loss figure of all discoms is expected to cross over INR 2 lakh crore in this fiscal .
23 states and 5 Union Territories (UTs) had raised their tariffs in 2012- 13 and this year too, 8 states and 1 UT have hiked rates . The range of tariff increment hovers around 3 . 6 to 24% all over India ..
Complete report available @ http://bit.ly/1dIC0G2.
Things are however changing, albeit slowly. An Appellate Tribunal Order in 2011 allows State Electricity Regulatory Commissions the power to go for an increment even without ARR filings by Discoms .
Moreover, the Financial Restructuring Plan announced by the central government has a rider that banks and FIs would not fund short term working capital to the Discoms unless tariff rates are raised on a regular basis .
According to the financial restructuring scheme 50 percent of the outstanding liabilities as on 31 st March 2012 will be taken over by state governments . State governments will have to provide full support to the DISCOMS for paying interest and principal .
The remaining 50 percent of the loans have been rolled over and have to be repaid by the distribution companies . In this scenario, tariffs revision is imperative for those states that have not increased the same from many years .
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Energyline India Initiative
- In this backdrop, IndianPetro has released its latest report on " Power Tariff in India : A Complete Dossier 2013 " that capture tariff increases in all consumer categories .
- The report collates the information in a simple easy -to - read format, state wise and category wise .
- The compendium is a one stop reference on tariff related figures and will be a ready reckoner for all stakeholders in the power industry. T
- The report has updated data till April 2013 and also covers some of the recent tariff orders passed by the regulators for 2013 - 14 also .
Andhra Pradesh has witnessed the highest tariff increment in the range of 22% to 24% followed by Haryana by 13%, Punjab by 9% and Bihar, Meghalaya, Nagaland by 7% each
Table of Contents
1. Overview of the Indian Power Sector
Introduction to the power sector
Break up of Generation Capacity in India
Power Requirement and Availability 2012 13
Energy Shortage and Capacity Addition
Region wise Projected Power Supply position for 2013 14
The Five Year Plan and Power Capacity
2. What are Tariffs?
The Electricity Act 2013
Tariff Policy 2006
Types of Tariff
Cost Plus Tariff
Time of Day ( TOD) Tariff
3. Tariffs Contents and Coverage ( Varies according to States)
Retail Supply Tariff Schedule
Consumer Category Covered
Local Bodies, Street lighting
Piped Water Supply Schemes
Irrigations, Townships and
Time of Day tariff
Additional Charges for Exceeding Contracted
Delayed Payment of Bills
4. States Covered
Jammu and Kashmir
Under JERC ( Joint Electricity Regulatory Commission)
Andaman and Nicober
Dadra and Nagar Haveli
Daman and Diu
5. Sample State Coverage ( Andhra Pradesh)