Bhopal: Brace for bill shock\, discoms seek 12% hike in power tariff

Bhopal: Brace for bill shock, discoms seek 12% hike in power tariff

With election over, so are the freebies. Before the polls, power discoms in MP had sought a power tariff hike of only 1.59% and now, two months down the line, the same discoms are asking for a whopping 12% hike.
Bhopal: Brace for bill shock, discoms seek 12% hike in power tariff BHOPAL: With election over, so are the freebies. Before the polls, power discoms in MP had sought a power tariff hike of only 1.59% and now, two months down the line, the same discoms are asking for a whopping 12% hike. So brace for a steep hike in energy bills.

Officials, however, say it has nothing to do with the elections, and that revenue losses dating to 2013-14 had to be added to the petition, increasing the revenue gap by 12%. If the regulator allows it, the monthly energy bill of an average consumer - who uses two ACs, a couple of fans, an LED TV and five LED bulbs, or about 425 units per month - will go up by at least Rs 400, say sources.

In February this year, discoms had shown a revenue shortfall of Rs 550 crore against their projected requirement of around Rs 34,100 crore for this fiscal. This was submitted as the annual revenue requirement (ARR) submitted before Madhya Pradesh Electricity Regulatory Commission (MPERC).

To bridge this gap of 1.59% they sought a power tariff hike of the same quantum. However, as the model code of conduct came into force, the decision on the tariff petition was withheld.