JERC gives nod to 17.29% hike in electricity tariff and forecasts revenue target of Rs 4116 cr at J&K – Jammu Kashmir Latest News | Tourism
*Revised rates in effect from October 1st
JAMMU, 13 October: The Joint Electricity Regulatory Commission (JERC) for UT of Jammu and Kashmir and UT of Ladakh has approved a 17.29% increase in the “Average Electricity Tariff in Jammu and Kashmir, providing for a revised revenue target of Rs 4,116.39 crores in the Union Territory.
The new electricity tariff, which was revised after 2016-17, will come into effect on October 1, 2022 in the Union Territory of Jammu and Kashmir. For various categories ranging from BPL to domestic, commercial and heavy industry, different revised rates have been approved by the Commission.
An order issued by the Commission here said the new electricity tariff was designed to ensure minimum inconvenience to citizens, while protecting the interests of the domestic, commercial, agricultural and industrial sectors. The Commission has decided to provide two tariff structures which are the full cost tariff without considering the government subsidy to JPDCL/KPDCL of Rs 2116.14 crores and the subsidized tariff after taking into account the subsidy.
With the existing tariff, the gap was bridged to the tune of Rs 2703.09 crore and with the subsidy support, the gap was reduced to Rs 606.95 crore through tariff revision. The revenue target after tariff revision was therefore projected at Rs 4116.39 crores by the Commission.
An official spokesperson said that the average overall nominal increase from the last revised tariff in 2016-2017 is barely 8% for some segments, while the inflation rate in the corresponding period is 24 % (Combined CPI: All India General Index (All Groups) fell from 131.1 in April 2017 to 162.5 in July 2022), so it is safe to say that there a an effective price reduction of 16% (adjusted for inflation). The new revised electricity tariff at J&K is much lower than that of Delhi, Punjab, Haryana and Rajasthan, the spokesperson added.
According to the order, “tariffs for consumers below the poverty line have been kept unchanged at Rs 1.25 for up to 30 units per month while for consumers in the household category, up to 200 units per month. , the tariff will be Rs 2 per unit, almost unchanged from before, for 200 to 400 units per month, the tariff will be Rs 3.50 per unit, an increase of 6% in 5 years and for more than 400 units per month, the tariff will be Rs 3.80 per unit, an increase of 8% in 5 years”.
“The corresponding tariffs for Himachal Pradesh, Uttarakhand, Punjab, Haryana and Delhi are Rs 5.95, 6.25, 7.30, 7 and 8 per unit respectively,” the order states.
The order further stipulates that the fixed charges will be increased slightly from Rs 5.50 per KW per month to Rs 8, the charges for lump sum metering will be Rs 175 for the first quarter of KW, then an increase of Rs 200 for each quarter of KW up to a load of 2 KW, beyond which the charges will be Rs 500 for each quarter of KW.
In the Commercial category, for single-phase connections, up to 200 units per month, the tariff will be Rs 3.10 per unit, 7% increase in 5 years, for single-phase connections, for 200 to 500 units per month, the tariff will be either Rs 4.70 per unit, increasing by 9% in 5 years and for single-phase connections of more than 500 units per month, and for all-purpose three-phase connections, the tariff will be Rs 5.10 per unit . The corresponding rates for Himachal Pradesh, Uttarakhand, Punjab, Haryana and Delhi are in the range of Rs 5.50 to 9 per unit. He adds that the fixed charges will be slightly increased from Rs 44 per kW per month to Rs 60 for single-phase connections, from Rs 104.50 per KW per month to Rs 130 for three-phase connections and the charges for flat metering will be Rs 500 for each quarter KW.
In the agricultural sector, charges have been rationalized to Rs 0.80 per unit for connections up to 10 CV, Rs 1.00 per unit for connections from 10 to 20 CV and Rs 5.25 per unit for connections more important beyond 20 HP. Fixed charges have been streamlined to Rs 30 per HP per month for all connections. The rate structure was only simplified because the increase in the agriculture category was minimal.
In the LT Industry category, applicable to connections below 100 kW, charges have been streamlined to Rs 3.65 per KVAH, and a fixed charge of Rs 60 per KVA, an overall increase of around 11% in 5 years. There will be a special category called LTIS-II for connections under 15 HP granted to certain small industries eligible for concession as per Government notification and for this category fixed charges will be Rs 30 per KVA per month.
In the HT Industry category, charges will be Rs 3.60, Rs 3.50 and Rs 3.44 per KVAh for 11 kV, 33kV and 66 kV connections respectively and fixed charges will be Rs 175 per kVA per month for all connections. The increase is about 22% in 5 years, less than the 24% increase in inflation and still significantly lower than any other state in the country in an effort to incentivize industrial investment.
In the HT Power Intensive Industry category, charges will be Rs 4.35, Rs 4.30 and Rs 4.23 per KVAh for 11 kV, 33 KV and 66 KV connections respectively and fixed charges will be Rs 225 per kVA per month for all connections and the increase is around 21% in 5 years.
In the Large consumer category, the charges will be Rs 4.90 and Rs 4.85 per KVAh for 11 KV and 33 KV connections respectively. The fixed charges will be Rs 225 per KVA per month for all connections and the increase is around 23% in 5 years.
For supply to government sector establishments, the tariffs will be Rs 6.90 per KVAh and the fixed charge of Rs 40 per KVA per month for all central and state government departments. The tariffs will be Rs 7.50 per unit and the fixed charge of Rs 60 per kW per month for public lighting, or Rs 3500 per kW per month on a flat rate. The tariffs will be Rs 7.50 per unit and the fixed charge of Rs 60 per kW per month for public water works at LT. The tariffs will be Rs 7.10 and Rs 7.00 per kVAh for the 11 kV and 33 kV connections respectively and the fixed charge of Rs 250 per kVA per month for the HV public water works. The average increase in these rates has been around 25%, at the same level as the rate of inflation over the past 5 years.
Relevantly, the average power purchase rate for Jammu and Kashmir UT is Rs 4.54 per unit and the overall technical and commercial loss for the financial year 2021-22 stands at Rs 46 % for Jammu division and 60% for Kashmir region from the prescribed ceiling. by 20%. Infrastructural improvements, technological interventions such as smart meters, and a revised but simplified rate schedule are key to improving the financial health of distribution companies. The department aims, with all necessary interventions, to bring losses within acceptable limits and provide 24/7 electricity to all consumers by 2025.
The tariff has been revised with the aim of providing round the clock power supply to the people of Jammu and Kashmir and reducing mass losses. The JERC has also kept the tariff rates lower for Jammu and Kashmir than other states or UTs in the country.
It is worth mentioning that tariffs for industrial categories vary from a minimum of Rs 4.70 to a maximum of Rs 7.75 per kVAh in the neighboring states of Himachal Pradesh, Uttarakhand, Punjab, Haryana and Delhi. In order to provide an incentive for industrial development, the price of the highest tier of industrial supply was kept lower than the lowest tier of all neighboring states. The new tariff schedule aims to minimize the burden for the end consumer while guaranteeing the financial health of electricity distribution companies. Care was taken to ensure that the tariff was competitive for industries, and the interests of the average farmer, small trader and average household were given paramount importance. The department is committed to modernizing the billing and metering system, in order to maximize compliance, minimize electricity theft and provide the best service to the end consumer. Consumers are encouraged to switch from flat metering to normal metering, as this will be economical for the consumer and good for the robustness of the distribution system.