Assam Power Distribution Company Ltd proposes a 23% power tariff hike

STAFF REPORTER

GUWAHATI: The APDCL (Assam Power Distribution Company Ltd) has submitted a proposal to the Assam Electricity Regulatory Commission (AERC) to hike power tariff by around 23 percent to bridge the revenue receipt-expenditure gap.

It is up to the AERC now to fix a new power tariff through public hearings, besides seeing the justification of the proposal. Some consumers and organizations in the state raise a hue and cry in every power tariff hike. They, however, do precious little to attend public hearings to justify their stance.

Talking to The Sentinel, APDCL MD Rakesh Kumar said, "We had around Rs 1,200-crore revenue earning-expenditure gap last year, including Rs 900-crore distribution-related loss. The cost of coal, maintenance of machinery and equipment etc., have gone up. We procure power from various sources. We cannot cut some fixed expenditures. During the Covid-19 pandemic, the industries remained closed, leading to less power consumption in the industrial and commercial sectors. We had to incur for that as we could not sell them power.

"We have no alternative sources of revenue earning other than a tariff. We have given details of our revenue and expenditure to the AERC. We will accept the rate that the AERC will fix through public hearings."

According to sources, Assam procures around 90 per cent power from other sources at high rates to meet the power demand. At present, the average power tariff is Rs 7.55 per unit. The APDCL has proposed to increase it to Rs 9.55 per unit. The consumers who consume less than 120 units monthly pay at the rate of Rs 4.90 per unit. The APDCL has proposed to hike it to Rs 6.75 per unit. The fixed charge up to 5KW is Rs 50 per month. The APDCL has proposed to make it Rs 75 per month.

According to sources, the State government spends much to augment the power distribution system. However, the power generation system remains stagnant for years together. It makes the authorities procure power from outside at high rates.

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