Power may get costlier in Rajasthan as tariff plea filed with SERC

Power companies have filed tariff petitions with the State Electricity Regulatory Commission (SERC).

Electricity Prices to Rise in Rajasthan: Rajasthan’s electricity consumers are bracing for higher bills. Power companies have filed tariff petitions with the State Electricity Regulatory Commission (SERC), citing increased costs and losses. They propose raising the minimum electricity consumption charge to ₹6 per unit, up from the current ₹4.75 per unit. This will affect all consumer categories. A new ₹1 per unit regulatory surcharge will also be imposed on all consumers, enabling power companies to recover approximately ₹53,000 crore in regulatory assets. This will include adjustments for the base fuel surcharge, with only the outstanding amount being collected, citing central government directives.

Furthermore, in addition to industries, domestic and commercial consumers with loads exceeding 10 kW (excluding agriculture) and equipped with smart meters will now be included in the Time-of-Day (TOD) tariff. Three separate surcharge and rebate categories have been created for these consumers.

Power Companies Propose Reduced Energy Charges for Domestic Consumers

However, power companies have proposed lower energy charges for most domestic consumers. They claim that the proposed increase in fixed charges and other surcharges will have a minimal impact. The commission has invited objections and suggestions from the public. A decision on the petition will be made after public hearings.

Setback for Industries: Loss of ₹1 per Unit Discount

Large industrial units with load factors exceeding 50% currently receive a ₹1 per unit discount on energy charges. This rebate is proposed to be eliminated. However, in general cases, the energy charge will be reduced from ₹7.30 to ₹6.50.

New industries currently receive discounts ranging from ₹0.55 to ₹0.85 per unit, applicable to both medium and large industries. This discount is proposed to be reduced to ₹0.20 and ₹0.30 per unit respectively.

Claims by Power Companies…

1- Proposal to reduce electricity charges across all categories for the first time.

2- The state has approximately 1.35 crore domestic consumers, with 1.04 crore receiving government subsidies.

3- The merger of domestic slabs affects approximately 17 lakh BPL (Below Poverty Line) and Aastha cardholders. Since the government already provides subsidies on the merged slabs, their bills will remain unaffected.

4- Electricity tariff rates have been unified for small, medium, and large industrial categories. Multiple energy charges in the industrial category have been replaced with a single rate.

5- Proposed reduction in electricity charges for agricultural consumers from ₹5.55 per unit to ₹5.25 per unit.
(Discoms presented their case late at night through media briefings highlighting certain points of the tariff petition.)

Expensive Electricity in Peak Hours, Cheaper During Off-Peak

• 6 AM to 8 AM – 5% surcharge
• 12 PM to 4 PM – 10% discount
• 6 PM to 10 PM – 10% surcharge

For consumers with loads exceeding 10 kW, the TOD tariff is divided into three categories. A 10% surcharge will apply to electricity consumption during the six peak hours (morning and evening), while a 10% discount will be offered during the four off-peak hours. The rationale is to reduce peak-hour electricity consumption by commercial and industrial units, ensuring uninterrupted power supply to other consumers during these times.

Slab Reduction…Decreased Electricity Charges, Increased Fixed Charges

1- Consolidation of three separate slabs (50-150 units) into a single slab with a proposed rate of ₹6 per unit. However, the fixed charge is proposed to be reduced from a maximum of ₹250 to ₹150 per month.
2- In the 150-300 unit slab, the tariff will be reduced from ₹7.35 to ₹7 per unit.
3- The third category will have only two slabs instead of four: ₹6 per unit for up to 150 units and ₹7 per unit for 150-500 units. The fixed charge in this category is proposed to be increased from ₹400 to ₹500 per month.
4- In the fourth category (consumption exceeding 500 units), the rates will be ₹6 per unit for up to 150 units, ₹7 per unit for 150-500 units, and ₹7.50 per unit for consumption exceeding 500 units. The fixed charge is proposed to be increased from ₹450 to ₹800 per month.
5- Separate proposals exist for commercial and industrial tariffs.