Sunday, January 12, 2014

No power tariff hike in Haryana in 2014-15

by Haryananewswire
CHANDIGARH, JAN 12
 No power tariff hike in Haryana proposed during 2014 - 2015. The present level of tariff to  continue up to March 2015 i.e. next 15 months whereas in majority of states including Punjab,    Rajasthan, UP & Delhi tariff increase of more than 10% has been proposed w.e.f. April 2014. No tariff increase has been proposed by Haryana for the FY 2014 - 2015 even in its financial restructuring plan.
                It was stated by Principal Secretary, Power Haryana Mr Devender Singh, while addressing a press conference here today. He said that as per the information available on the internet / FRP / through discussions with the officials in  these state utilities, the expected increase in tariff in various states in April 2014 is Punjab (11%),    Delhi (10%), Rajasthan (13%), UP (20% in domestic & 10% overall), Bihar (50%), Karnataka (10%)   & AP (25%).
With the proposed increase in tariff, the tariff in Haryana would be substantially lower than the neighbouring states for most of the consumer categories during the FY 2014 - 2015 w.e.f. April  2014 i.e. in less   than 3 months as given in the attached table. (the average tariff for broad categories  has been taken and the increase as reported on internet / in discussions with the officials has been applied for demonstration).
Recently w.e.f. 1st January Haryana has given the benefit of lower slab of tariff to the consumers   using 200 to 1600 units in a billing cycle. This is expected to result in a benefit of approx. Rs. 200      per bill to a consumer in this slab.
Haryana has one of the lowest tariff in agriculture category and the State is subsidising the tariff for the agriculture. The entire FSA of the agriculture consumers is also being borne by the State Government. The State Government is paying a subsidy of Rs. 90000 to 1 lac per connection whereas the farmer is paying just Rs. 6000 - 8000 per year. Haryana has subsidised the power to farmers in  the overall national economic interest as Haryana is the foodgrain basket of the country.  In Delhi the subsidy is Rs. 1300 crores whereas Haryana is providing a subsidy of Rs. 5200 crores which is 4 times as that of Delhi..
Haryana has a high loss level of 25% as compared to Delhi, Punjab & Rajasthan (15% - 18%).   Discoms are making efforts to reduce the losses and at a 10% lower loss level (same as Delhi/Punjab), the tariff in Haryana would be lower than these states at present also.
In Haryana cost of power purchase at consumer end (power purchase cost grossed up with the    losses) is very high (5.25) as compared to Delhi (4.61), Punjab (4.32), Rajasthan (4.65), UP(5.32), Maharashtra(4.61). 80% of the cost of supply in Haryana is the power purchase cost which is uncontrollable.  The other major cost is the employees cost which in Haryana at less than 50     paise      per unit is significantly lower than that in Punjab (60 paise), HP (88 paise), Rajasthan (60-70  paise). After adding the employees cost and other O&M costs, the overall cost of service in Haryana  (including FSA) comes to RS. 6.27 which is significantly higher than the other states inspite of one of  the lowest employees cost in Haryana. 
In the past also, there was a tariff increase of 13 per cent in Haryana in the FY 2013 - 2014 in comparison to hike of 25% in UP, 23% in AP, 20% in Maharashtra, 16% in HP & 12.5% in Rajasthan. Further during the last three years, on an annualised basis, the increase in Haryana has been about   10.1% as compared to about 18% for Rajasthan, 17% for Delhi,  16.5% for UP, 12.7% for Himachal  Pradesh, and about 12% in Bihar, Andhra Pradesh & Maharashtra. (as per the information available  on the internet). In Delhi the subsidy to the domestic consumers was required on account of high rate  even in the lowest slab and this subsidy is committed only till March 2014 so far.
Referring to more power supply in the state, he said that on the qualitative side, Haryana  has supplied 20% more power during the current year. In rural areas the power supply was increased from 11 to 14 hours a day. For urban areas the power supply  was increased from 20 to 24 hours, for industry from 20 to 24 hours per day. This resulted in 20%   growth in consumption in comparison to the last year. He said that increase in consumption was also  one of the reasons for increase in power bills in absolute terms as the power bill would increase with  an increase in consumption even if there is no tariff increase.
Mr Singh said that Haryana discoms are committed to supply quality power to the consumers of the State. In order to strengthen and augment transmission and distribution system it has been planned to spend Rs. 3372.79  crore during the current financial year. Furthermore, the ongoing system strengthening and augmentation works will be completed with an estimated capital expenditure of Rs. 11725.43 crore during the next three years.
 On consumer services the discoms have launched SMS service to register complaints. Complaints can also be registered through email at feedback@uhbvn.com. A Centralized Call Centre with toll free number 1800-180-1615 is functional at Gurgaon for registering and redressal of consumer complaints of both the discoms. Online Consumer Grievance Redressal System (CGRS) :- An online CGRS System is functional on the website of UHBVN & DHBVN for online registrations of consumer complaints.  On an average, 5000 no. complaints per month are being registered on the portal.
He said that to resolve the billing related complaints, the field offices have been directed to get the incorrect bills rectified immediately. The SDOs have been directed to remain in their offices from  9 a,m to 12 noon everyday to resolve the billing & other complaints of the consumers expeditiously.
 In case a consumer has any concern regarding functioning of his meter, the meters can be got tested in the best laboratories anywhere in the country.The field offices are being instructed to hold special darbars / camps to address the metering and billing related complaints of the consumers, Mr Singh added.  
While replying to questions, Mr Devender Singh said that the Haryana Power Generation Corporation Ltd. plans to phase out unit 1-4 of 110 MW each at Thermal Panipat. The electricity being produced by these units was costing more and these units are old. It has been proposed to set up a 660 MW capacity unit by replacing the existing unit number 1-4 for  which sufficient land is available and there will be no problem of coal linkage and water etc.
On this occasion, Managing Director UHBVN and DHBVN, Mr Anurag Agarwal, Managing Director HPGCL, Mr. MKV Rama Rao, Director UHBVN, Mr AK Grover and other senior officers of Haryana Power Utilities were present.
                                  Highlights of press conference
  No tariff increase in Haryana till March 2015.
 Other States like Delhi, Punjab, UP, Rajasthan have proposed tariff increase 10% from April 2014.           
   After the proposed increase the effective tariff rate in Haryana (incl. FSA,RA,ED,etc.) to be lower in almost all the categories viz. domestic (up to Rs. 2 per unit less), NDS (up to Rs. 2 per unit less) &  Industry (up to Rs. 1.50 per unit less).
  Haryana has a high loss level at present (approx. 27%) as compared to about 15% in the other neighbouring states. At their loss level the present tariff in Haryana is also comparatively lower.
   In Haryana cost of power purchase at consumer end (power purchase cost grossed up with the losses) is very high (5.25) as compared to Delhi (4.61), Punjab (4.32), Rajasthan (4.65), UP(5.32), Maharashtra(4.61). 80% of the cost of supply in Haryana is the power purchase cost which is uncontrollable.  The other major cost is the employees cost which in Haryana at less than 50 paise per unit is significantly lower than that in Punjab (60 paise), HP (88 paise), Rajasthan (60-70 paise). After adding the employees cost and other O&M costs, the overall cost of service in Haryana (including FSA) comes to RS. 6.27 which is significantly higher than the other states inspite of one of the lowest employees cost in Haryana. 
   Fuel Surcharge Adjustment (FSA) = Actual power purchase cost incurred & paid by the discom - Allowed power purchase cost by the Regulator.
   In Haryana FSA during the FY 2012 - 2013 was 90 paise per unit against which only 32 paise are being recovered from the consumers. In FY 2013 - 2014, against 80 paise FSA, the recovery is being made at 34 paise only.
  Power Supply increased by about 20% in Haryana this year. Running hours increased across all categories. Rural Households (increase from 11 hours to 14 hours per day), Industry & Urban (increase from 20 hours to 24 hours per day).

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