Madhya Pradesh: Power tariff hiked by 2.64% with effect from April 1

Green Energy Tariff of Rs. 1.13/kWh to be implemented.

Staff ReporterUpdated: Thursday, March 31, 2022, 11:09 PM IST
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Bhopal (Madhya Pradesh): Madhya Pradesh Electricity Regulatory Commission (MPERC), on Thursday, has proposed power tariff hike at rate of 2.64% to be effective from April 1,2022, according to Madhya Pradesh Electricity Regulatory Commission (MPERC) order issued on Thursday.

The Commission has determined Aggregate Revenue Requirement (ARR) of Rs 45,971 Crore for the financial year 2022-23 and allowed a total revenue gap of Rs. 1,181 Crore at existing tariff to be met by increasing the tariff by only 2.64%.

The Commission has determined Green Energy Tariff of Rs. 1.13/kWh for the first time, which is an optional tariff and will be over and above the normal tariff of respective category as per Tariff Order for FY 2022-23.

This will fulfill requirement of the consumers who want to meet their contracted demand from Licensee, entirely (100%) through Renewable Energy, states the order.

In order to bring in more clarity about the likely trajectory of Revenue Requirement of Distribution Licensees over a period of 5 years, the Commission has determined Multi Year Aggregate Revenue Requirement (ARR) for the first time covering the Control Period from FY 2022-23 to FY 2026-27.

However, the power distribution companies (DISCOMs) had projected Aggregate Revenue Requirement (ARR) of Rs. 48,874 Crore for FY 2022-23, with a revenue gap of Rs. 3,916 Crore at existing tariff and proposed to recover this gap through a tariff hike of 8.71% on existing tariff.

DISCOMs had also submitted true-up Petition for FY 2020-21, claiming revenue gap of Rs.4,982 Crore. However, after prudence check, the Commission has allowed revenue gap of Rs. 226 Crore, says the order.

Besides, tariff for Low Voltage Industrial category of consumers (LV-4), Railway Traction (HV-1) and E-vehicle/ E-Rickshaw Charging Stations (LV-6/HV-8) has not been changed.

No metering eharges shall be levied to the consumers. To incentivize domestic category Consumers, there will be a rebate of 0.50% for online bill payment without any ceiling.

Rebate/Incentives applicable for new and existing HT/EHT connections, conversion of existing LT Industrial/Non-domestic connection to corresponding HT connection, captive power plant consumers and Open Access Consumers shall be continued without any change and extended for FY 2022-23.

Similarly, rebates/Incentives for pre-paid metering, advance bill payments, prompt bill payments, online payment, Load Factor, Power Factor and TOD shall be continued without any change.

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