In a significant development, the Tripura Electricity Regulatory Commission (TERC) has put forth a proposal for a 7% increase in power tariffs, a decision that comes in contrast to the Tripura State Electricity Corporation Ltd’s (TSECL) staggering demand for a nearly 150% tariff hike. The proposed tariff revision encompasses a modest rise in fixed charges by Rs 5, with the remaining portion of the increase designated for energy rates.
The TSECL has been facing serious financial crunch at present for various reasons.
Highlighting the existing scenario, the Commission pointed out that the Fixed Charges in the state are relatively lower compared to other regions. In an official press release, TERC stated, “TSECL has identified a revenue gap of Rs 1200 crores, which roughly translates to an approximately 150% tariff increase. However, TERC has prudently scaled this down to Rs 60 crores, necessitating a 7% tariff increase. TERC has split the increase into two components, raising Fixed Charges by Rs 5, which is the lowest in the country, and allocating the remaining amount to Energy Rates. This adjustment will contribute an additional Rs 60 crores in revenue to TSECL.”
Under the proposed tariff structure, beneficiaries of the ‘Kutir Jyoti Scheme’ will incur charges of Rs 68/connection/month for consumption up to Rs 15 kWh/month. Additional consumption beyond this threshold will be subject to tariff rates applicable to the normal domestic category.
For Domestic (rural) consumers, fixed charges will vary within the range of Rs 20/connection/month to Rs 55/connection/month, contingent upon the number of units consumed. Energy Charges per kWh for different consumption units, spanning from Slab 1 (0-50 units) to Slab 4 (above 301 units onwards), will be Rs 5.08, Rs 6.40, Rs 6.59, and Rs 7.70, respectively.
Urban domestic consumers will face fixed charges of Rs 55/connection/month. In the urban category, Energy Charges per kWh will begin at Rs 5.08 for consumption up to 50 units, followed by Rs 6.40 for the next 100 units. For the subsequent 150 units, the rate will be Rs 6.59, while consumption exceeding 301 units will incur a charge of Rs 7.70 per kWh.
In the commercial sector, Fixed Charges will range from Rs 30/connection/month to Rs 66/connection/month.
Furthermore, the TERC authority disclosed that a special rebate of 5% on the total billing amount will be granted to consumers for prompt payments made within 7 days from the billing date.
To mitigate the impact of the tariff increase on consumers, TSECL has informed TERC that the Government of Tripura will provide subsidies amounting to Rs 50 crore to different categories of consumers.
The newly proposed tariff structure is scheduled to come into effect from October 1, 2023. This development reflects the ongoing efforts to balance the financial needs of the electricity sector while ensuring affordability for consumers in Tripura.
