Goa: Steep power hike on cards as JERC suggests 5.3% tariff rise

PANAJI: The Joint Electricity Regulatory Commission (JERC) has recommended a 5.31% increase in power tariff, which is higher than the 3.84% hike proposed by the Goa electricity department. The fixed as well as energy charges for both domestic and commercial connections, including both low and high tension connections, have been hiked. However, power minister Nilesh Cabral said that he requested CM Pramod Sawant not to bring the tariff into force.
According to the tariff order passed by the JERC, only a part of the electricity department’s revenue gap of Rs 342.3 crore will be recovered by revenue from consumers through the increase in retail tariff.
The rest will be recovered through budgetary support from the government, it said. A total of Rs 75.6 crore is expected to be recovered through the tariff hike, while the remaining Rs 167 crore will be recovered through budgetary support.
“In case this gap had to be entirely fulfilled by revenue from consumers, then it would have demanded an overall average increase of 23.5%,” JERC said, adding that the hike would have been steeper if the department didn’t receive budgetary support. “In case the government had not provided budgetary support, an average increase of 17.24% over and above the approved tariff increase would have been required, which would have led to a tariff shock for consumers.”
The commission cautioned the government against its overreliance on its budgetary support, and advised the department to “prepare itself for repercussions in case the government withdraws budgetary support in the future”.
Due to the nationwide lockdown, the tariff order was passed on May 19, and is supposed to have come into force from June 1. Even as Cabral said he requested the CM not to bring the hike into force, officials said that even if a decision is taken later to permit the hike, it will be done with effect from June 1.
The hike for domestic consumers is between 10 paise to 25 paise per unit for energy charges. The fixed monthly charges for three-phase domestic connections has been increased by Rs 5, and for the low income group, by Rs 10.