Monday, October 5, 2015

HERC fixes rate of electricity and fuel surcharge, not Haryana Govt

CHANDIGARH, OCT 5
Media Advisor to Chief Minister  Amit Arya said that the rates of electricity and fuel surcharge are not decided by the State Government but these are fixed by the Haryana Electricity Regulatory Commission (HERC). HERC is a statutory body which has been constituted under the provisions of Haryana Electricity Reforms Act 1997 and Electricity Act 2003. The members of the HERC are appointed by independent High Powered Committee. The Commission has three members.
He said that no representative of the government or of Power Utilities is working in the HERC and the electricity tariff is fixed by the HERC. Presently, a Chairman and a member are working in the Commission and both appointments were made during the regime of previous government.
            Mr. Arya said that the present government had, in the month of March 2015, released a White Paper on the losses of Power Department, in which correct facts and figures of Power Utilities were presented. According to the White Paper, the losses of Haryana Power Generation Corporation Ltd have increased by 500 per cent and debt by 200 per cent during last ten years. Similarly, the losses of the Uttar Haryana Bijli Vitran Nigam and Dakshin Haryana Bijli Vitran Nigam have increased sharply by 2,600 per cent and debt by 1,900 per cent.
            He said that these DISCOMs suffered losses to the tune of Rs 1,030 crore in the year 2004-05, which have increased by 2,600 per cent and reached Rs 26,912 crore in year 2013-14. The debt of these DISCOMs was Rs 1,458 crore on March 31,2004 which has increased by 1,900 per cent and reached Rs 28,199 crore on March 31, 2014. Entire debt burden has been carried forward from the previous government’s regime and as a result of it, the consumers have to pay Rs 1.20 per unit as only the interest on this debt.
            Mr Arya said that previous government had decided to shoulder the burden of debt amounting to Rs 7,366 crore of Power Utilities. Not only this, this proposal was also approved by Cabinet in its meeting held on March 29, 2013, but the previous government had never repaid this amount. The present government has decided to bear the remaining debt of Power Utilities itself and this has been approved in-principle by the Central Government. After getting the approval, the government would take into account Rs. 25,000 crore of medium and short term loans of Power Utilities. This would result in lessening of the debt burden of Power Utilities. The biggest benefit of this would go directly to consumers, which would result in lowering of electricity tariff.
            He lamented that opposition parties are misleading the people about the hike in electricity tariff, but fact is that electricity rates were increased to 8.51 per cent in May 2015, during the tenure of previous government, it was decided to increase power tariff by 15 per cent in 2015-16 in the State. The principle approval for the same was also taken by the erstwhile government on March 29, 2013. It is also a false and misleading publicity of the opposition that this year fuel surcharge was imposed for the first time, whereas 58 paisa per unit fuel surcharge was imposed in year 2012-13 and 34 paisa per unit in 2013-14. Now, the Commission has imposed fuel surcharge of 37 paisa per unit.
            It is also pertinent to mention here that computerization system was to be adopted under R-APRDRP in the Power Department in year 2009 under which reading and billing arrangements for all consumers were to be strengthened. The Government of India was to give grant in aid of Rs 221 crore for this purpose. However, it is unfortunate that the previous government, during their last five years rule, had not implemented this system. If this system had been implemented on time, a lot of problems concerning electricity bill would have been automatically resolved. The present government has started work on this system and is committed towards its early implementation.
            The present government started working to improve the functioning of administration immediately after taking the reins of the administration. The Government set up special counters for on-the-spot redressal of consumers’ grievances. Consumers have been given the facility to pay their bills in two or three installments. Billing in small industries where KVAH meters are not installed has been done on the basis of 0.9 power factor. A system is being provided for installation of proper capacitor for maintaining power factor at desired level of small industries. Instructions have been issued as per which the SDO concerned would examine the report of billing agency before the release of power bills, so as to avoid any irregularities in the bills.

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