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| Tariff Existing & Proposed:Minimum Charges & Billing Slabs for metered Consumers not rational | | | Daya Sagar | 11/6/2011 11:09:57 PM |
| There appears not much logical relationship between the existing power tariff and proposed tariff as laid down in the petition filed by Power Development Department Government of Jammu and Kashmir through its Development Commissioner ( Power) before J & K State Electricity Regulatory Commission for approval of Annual Revenue Requirement (ARR) and tariff revision for the FY 2011-12 in June 2011. Common consumer has to be socially supported and even if there is only one truthful consumer he has to be given fair treatment. JKSERA has not yet disposed off the petition . May the delay is due to the fact the JKSERA too is finding the proposals not that realistic and logical. For example for the metered and unmetered domestic power connections the exiting minimum charges and flat charges do not co exist to nearness. Similarly for the proposed tariff for 2011-2012 too the position is same. For example the minimum charges for the metered 1 KW domestic connection as they exist in 2010-2011 are Rs.40 and for unmetered connection are Rs.390. Similarly the proposed charges for 2011-2012 for metered domestic connection of 1 Kw are Rs.100 min or consumption which ever is more and for unmetered I Kw connection it is proposed flat of Rs. 500 per month ( thereafter Rs.500 for every 450 W addition in load). The non seriousness would be exposed in case the actual billing done for metered domestic and commercial connections during 2010-2011 and for the two quarters of 2011-2012 is analysed.
The proposed flat rate for un metered connections would reveal the doubts I have tried to project. Although the minimum charges proposed for metered connections would not affect the honest customers since they are already paying more than the minimum charges when their connection is in use but it would surely affect them then they are not using their supply lines for any reasons.
So the minimum charges for the metered connection should not be increased rather the existing rate be reduced to one fourth of the present rate subject to min Rs. 10 per connection for metered connections and this could be charged as Installation charges / service charges along with the cost of actual power consumed. This way more consumers would come forward voluntarily to get their connected load revised even higher side. The biggest advantage to the department would be that estimates of connected load would improve and the planning for the distribution system / equipment too would be commercially more realistic.
No doubt, the unit tariff need be revised ( from time to time ) for the metered domestic and non domestic connections both as regards the unit rate as well as the slabs for change of unit rate. But surely not on the basis of the revision as proposed by PDD in its petition before JKERC.
In the year 2008-2009 PDD had said that the tariff for power has not been revised. Where as for the domestic metered customers there was indirect revision in the cost of energy units supplied to lower level consumers. Earlier to that ( 2008-2009) the slabs for change of tariff used to be 0-50 units ( .85 / unit ) , 51-200 ( Rs. 1.15 /unit ), 201 to 400 ( Rs.1.45 / unit) , and above 401 units per month ( Rs.2.00 / unit) but in the year 2008-2009 the slabs were changed as 0-30 ( Rs.0.90 /unit) , 31-100 ( Rs. 1.15 /unit ) , 101-200 ( Rs. 1.40 /unit ) and 201 and above ( Rs. 2.10 / unit ) . Ofcourse 22% ED on the tariff rates was to be charged extra.
The maximum unit rate prior to 2008-2009 started after 400 units consumption ( approximately 13 units per day but from 2008-2009 it started after 200 units ( approximately 6 units per day ) consumption. This had increased the bill of a normal user of 400 units irrationally. A consumer with I Kw connected load who consumed 400 units per month in 2005 was to Rs.616 {including 22 % percent Electricity Duty }. The same consumer in 2007 /2008 had to pay Rs.814 and in 2010 Rs. 941. A small 400 unit consumer paid 52 percent more in 2010 than what he paid in 2005 / 2006 . Where as those domestic consumers who consumed 1000 units /pm in 2005 paid only 31 percent more in 2010.Where as those who consume still large quantity of power say 2000 units /pm in 2005 paid Rs.4520 and in 2010 they pay Rs..5723. In other words those who consumed 2000 units per month in 2005 paid only 26.6 percent more in 2010 where as those who consumed 400 units pay 52 percent more in 2010.It is obligatory on the part of government to accommodate the needs of low strata people { a domestic consumer who consumes lesser power surely falls in lower strata and and who consumes 400 Units per month genuinely falls in the category of lower strata consumer inview of the energy requirements / appliances that a normal person has today }. But PDD department operating under the vigilance / control of JKSERC appears to have ignored this principle as would apply to a welfare state like India. There fore , the tariff slabs that existed earlier i.e 1-50 units, 51 to 200 units, 2001 to 400 units and 401 & and above units be restored. The existing tariff for metered domestic connections for 2010-2011 is 0-30 units
( Rs.1.00 /unit) , 31-100 ( Rs. 1.30 /unit ) , 101-200 ( Rs. 1.60 /unit ) and 201 and above ( Rs. 2.45 / unit ) and the proposed for 2011-2012 is 0-30 units ( Rs.1.40 /unit) , 31-100 ( Rs. 1.80 /unit ) , 101-200 ( Rs. 2.20 /unit ) and 201 and above ( Rs. 3.40 / unit ). Surely the increase demanded is not reasonable keeping in view that the losses incurred by the department due to pilferage and illegal connections are very very high. Slabs surely need be restored to the before 2008 level for metered domestic consumers ie 1-50 units, 51 to 200 units , 2001 to 400 units and 401 and more units. Any increase if atall made ( since those consuming upto 400 units have already paid proportionately higher costs after 2008 due to changed slabs) should be made with the slabs as exited before 2008. For 2010-2011 the total energy units approved by JKSERC for purchase by PDD were 10194.35 MU and the actual purchase was 10102 Million Units where as actual units saleable were kept as only 4304 MU ( 57.48 % loss ) but so strangely the actually billed units have been only 3833 MU ( 62.06 % loss) . The targeted tariff revenue and misc were kept just 793.57 Cr INR but here too only 702.30 Cr INR could be achieved. This clearly shows that there is enough scope for improving recoveries and in case the pilferages are cut, the illegal connections are regularized, the metering is made truthful the revenue even at the present rates could be doubled. So, no increase has to be there, rather the slabs for the metered domestic connections ( even commercial ) be revised on the higher side and the minimum charges be reduced to Rs. 10 per Kw and renamed as service / installation charges to be charged in addition to the actual energy drawn. The PDD has added to cost of sales also the Impact of water usage charges of Rs. 317.38 INR as well as supplementary Bills raised by CPSU's worth Rs.120.42 INR. Under the circumstances in hand no comments could be made for reasonability.
Above all it can not be overlooked that consumers are already paying additionally 22 % Electricity duty on the tariff . Therefore , the cost should be seen as being paid by the consumers is 1.22 times the tariff displayed i.e the Tariff shown as Rs.1 per unit is actually Rs. 1.22 per unit. This is hidden cost being realized. No doubt the power cost has to be paid by the consumer but it has to be legitimate. At the national level questions have been raised even on the producers of hydo electric power since there too the cost of production are high ( PDD petition has listed very wide range of unit costs for Hydo Plant supplies ) due to in adequate management standards. Any how PDD has no control over it .
Daya Sagar is a Sr coloumnist of Kashmir affairs and a social activist dayasagr 45@ yahoo. com 9419796096 |
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