Bhopal: Electricity just got costly by 1.65%

Bhopal (Madhya Pradesh): Electricity is set to punch a bigger hole in your pocket this summer. Madhya Pradesh Electricity Regulatory Commission on Tuesday night hiked tariff rate by 1.65%.

The commission also created a separate category Metro Rail (HV-9 for operation of Metro in the state.

As far as tariffs are concerned, Electricity Distribution Companies had projected the need of Rs 49, 530 crore net revenue for 2023-24. To compensate revenue difference of Rs 1,537 crore, these companies had proposed a hike in power tariff by 3.20%.

Power companies also presented certification plea of year 2021-22 to claim revenue difference of Rs 3,276 crore. However, during subsequent evaluation, the Commission recognized revenue difference of only Rs 1,648 crore and accepted the need of Rs 48,993 net revenue for financial year 2023-24.

Commission acknowledged Rs 795 crore as revenue difference in existing tariff rate. To compensate this difference, it accepted the hike of 1.65 % in tariff.

Besides, minimum charges have been done away with for domestic consumers (LV1). No change has been made in tariff of category LV-2 and LV 4 consumers.  Now no metering charges will be levied on consumers. Electricity rates for e-vehicles, e-rickshaw charging stations (LV 6/HV 8) and permanent charge too have been done away with.

Commission has also fixed the process for category-wise green energy charges.

Some concessions have been also given by the commission. For instance, the relaxation of 0.5%, without any maximum limit, would be available to consumer’s on online payment of electricity bills.

The Tariff determined in Retail Supply Tariff Order for FY 2023-24 will come into effect seven days after the date of publication and bills will be issued accordingly.