Guwahati: The power tariff in Assam will be increased by 8% from April1. Consumers would now have to pay an additional 59 paisa each unit.
According to Kumar Sanjay Krishna, chairman of the Assam Electricity Regulatory Commission (AERC), the new electricity cost will be Rs 7.20 per unit, up from Rs 6.61 currently.
The increase was granted after a revenue shortfall in the current fiscal year as a result of ongoing COVID-19-induced lockdown and a drop in demand for a significant length of time.
“The APDCL had sought a hike of roughly Rs 2.41, a 34 percent increase, in a petition before the AERC, but the regulatory commission has permitted an average price hike of 8% across categories for 2022-23,” Sanjay Krishna said.
“During the financial year 2020-21 and onwards, the COVID-19 pandemic had a negative impact on the economy as a whole.” Though the pandemic had a minor impact on generating and transmission, it had a considerable impact on the distribution sector, specifically APDCL,” he stated.
The APDCL (Assam Power Distribution Company Limited) petitioned the AERC for clearance to truing up a shortfall of Rs 1,168 crore, including the carrying cost of Rs 195 crore for 2020-21, taking into account the impact of COVID-19 and other concerns.
The APDCL also claimed a Rs 710 crore APR (annual percentage rate) shortfall for 2021-22 and a Rs 1,157 crore ARR (average revenue realisation) imbalance for 2022-23, totaling Rs 3,035 crore.
“However, in order to provide some pricing relief to consumers, the APDCL limited their claim to Rs 2,189 crore, which corresponds to a 34 percent increase over the current tariff,” Krishna explained.
The AERC has allowed a cumulative revenue deficit of Rs 946 crore against the APDCL’s claim of Rs 2,189 crore for 2022-23, he added.
“To lessen the burden on customers, the Assam government has authorised a power purchase subsidy of Rs 400 crore to the APDCL, after which the net shortfall to be recovered through pricing for 2022-23 works out to Rs 546 crore,” he said.
“As a result, the commission has decided on an overall rise in the energy cost of roughly 8%, which is an average increase of Rs 0.59 per unit,” Sanjay Krishna explained.