Power tariff increase gives a jolt to consumers

Electricity department says there is no alternative to the move as it has to bridge the revenue-expenditure gap

A growing burden: After the power tariff revision for the second time in three years, customers are beginning to feel the pinch.

There is widespread anger among domestic and commercial consumers against the government for its decision to increase power tariff based on the recommendations of the Joint Electricity Regulatory Commission.

In less than three years, the government had increased power tariff twice putting additional strain on household spending. After increasing the tariff in 2016, last week the Electricity department increased the power tariff by 4.59% to fill the gap between revenues and expenditure. In addition to it, a 4% surcharge would continue during the current financial year, the JERC announced.

The increase, which is effective from June, will see the monthly domestic bill going up from a minimum of ₹20 to ₹145. The maximum hit would be those consuming above 400 units.

Poor service

Consumers believe that proportional to the increase, the service delivery mechanism had not improved. “Today, there was a power cut in our area. We can understand the needs of the department in improving the revenue but it should first take steps to prevent transmission and distribution loss instead of burdening people with frequent tariff increase,” said Vijay, a resident of Gnanaprakasam Nagar.

“It is indeed shocking that the Puducherry administration has been resorting to increase in power tariff quite often holding the middle and low income group of consumers to ransom. Normally, industrialists and other entrepreneurs would make a beeline to Puducherry to install their units attracted by comparatively lesser power tariff than in other States. Now the reverse is likely to happen with industrialists making a flight out of Puducherry. Puducherry does not have an Electricity Board. Consequently, the overhead commitments would be less here. The government could resort to “operation arrears” to mop up the revenue of the department and this was done at one stage by the administration. No facilities are available but the rise in tariff would hit common man and hence the move should be given up,” said B. Radha, a senior citizen in Boulevard.

Mukesh, another resident of Mudaliarpet, said that power was bought at an exorbitant rate and the burden entailed by such purchases was passed on to the common man. The government should continue with the old rates and look at alternative means to mop up revenue.

The hike in power tariff is certainly going to have its ripple effect in the consumer sector. People in the hospitality business said they were already burdened with GST.

“We cannot absorb the power tariff hike too. The hike is huge for the commercial sector. Going by the new tariff, my monthly bill will go up by a few thousands of rupees,” said Shanmugham, a restaurant owner.

Tourists have now started complaining about the exponential hike in room tariff. “Guests complain that five years ago room tariff was cheaper but now it is on par with any city. We can’t pass on our financial burden further on the customers,” he added.

“The hike is bound to escalate monthly budget, especially given the number of electrical home appliances consumers use these days,” said Usha Devi, a home-maker in Vaithikuppam.

Worst hit

The worst impact would be on low-income households. “I am now worried about making ends meet if my electricity bill goes up,” said Aasaan, a housemaid in Solai Nagar.

The Electricity department had its reasons for the latest hike. The JERC fixed the tariff based on the net revenue requirement for the financial year. The revenue requirement worked out for the fiscal was around ₹1,508 crore, including ₹1,282 needed for power purchase.

The revenue that could be collected based on the tariff existed till May was ₹1,441 crore. So, the gap between the revenue and expenditure was around ₹67 crore.

According to Superintendent Engineer and Head of the department, R. Murali the hike was required to bridge the gap.

Mr. Murali, who will take charge as head of the department on Monday, said the department would take all steps to reduce transmission and distribution loss. Steps would be taken to remove all defective meters, he said.

“I can assure the consumers that there will not be any hike in the immediate future. If we plug transmission and distribution loss, we can save a lot of money and need not put the burden on consumers to meet expenditure requirements,” he said.

(With inputs from

S. Prasad and

M. Dinesh Varma)