Power utility CESC Ltd has sought a sharp hike of 18 per cent in average tariff to Rs 7.55 a unit from the regulator for the financial year 2014-15.
"CESC has filed petition for new tariff for three consecutive years from 2014-15, 2015-16 and 2016-17 with West Bengal Electricity Regulatory Commission," a CESC official told PTI here."CESC has demanded an average tariff of Rs 7.55 a unit for 2014-15 or a 18.4 per cent rise over the current average tariff of Rs 6.38 consumers are currently paying," the official said.
CESC has demanded an average tariff of Rs 7.76 in 2015-16 and Rs 7.98 for 2016-17 for each unit of power. If the regulator allows the hike, CESC would get an additional revenue of Rs 1,070 crore in 2014-15.
CESC is the sole distributor of electricity within an area of 567 sq km of Kolkata and Howrah serving 2.3 million consumers. The reason cited for the tariff hike by CESC was unprecedented inflationary pressure and consequential cost increase, together with steep increase in prices of fuel and impact of cost of power purchase under long term agreements. However, the new tariff by CESC estimated fuel cost (coal) based on current prices and any change would have consequential effect under the current mechanism of monthly variable cost adjustment (MVCA).In 2013-14, the utility had raised tariff by 28 paise due to rise in coal price under variable cost adjustments.
"CESC has filed petition for new tariff for three consecutive years from 2014-15, 2015-16 and 2016-17 with West Bengal Electricity Regulatory Commission," a CESC official told PTI here."CESC has demanded an average tariff of Rs 7.55 a unit for 2014-15 or a 18.4 per cent rise over the current average tariff of Rs 6.38 consumers are currently paying," the official said.
CESC has demanded an average tariff of Rs 7.76 in 2015-16 and Rs 7.98 for 2016-17 for each unit of power. If the regulator allows the hike, CESC would get an additional revenue of Rs 1,070 crore in 2014-15.
CESC is the sole distributor of electricity within an area of 567 sq km of Kolkata and Howrah serving 2.3 million consumers. The reason cited for the tariff hike by CESC was unprecedented inflationary pressure and consequential cost increase, together with steep increase in prices of fuel and impact of cost of power purchase under long term agreements. However, the new tariff by CESC estimated fuel cost (coal) based on current prices and any change would have consequential effect under the current mechanism of monthly variable cost adjustment (MVCA).In 2013-14, the utility had raised tariff by 28 paise due to rise in coal price under variable cost adjustments.