Public sector power utility, Dishergarh Power Supply Company Ltd (DPSC) has asked for a 15.5 per cent hike in tariff rates for 2002-03 from the West Bengal Electricity Regulatory Commission (WBERC).
The company is selling power at an average rate of 299 paise per unit and a 15.5 per cent hike will allow it sell power at 345 paise per unit. The revised power tariff submitted to WBERC for the years 2000-01 and 2001-02 had been calculated by the company itself.
DPSC has submitted a package prepared by Power Finance Corporation Ltd (PFC) on enhanced power tariff for the next financial year.
The company had earlier engaged PFC for preparing its review petition against rates allowed to the company last year. The petition was, however, rejected by WBERC on the ground that the review petition did not raise any points that the commission had overlooked, or any major development after declaration of the rates by the commission.
DPSC had asked for a 11 per cent hike in tariff. WBERC granted only a 1.27 per cent hike for 2000-01. For 2001-02, the company asked for an 18 per cent hike and received instead a permission to raise tariff by 3.46 per cent only.
On the financial front, DPSC expects to register a Rs 220 crore turnover for 2001-02 and will probably remain in the red at marginal losses. The possibilities of reporting a loss depends on WBERC again, where issues relating to fuel surcharge adjustments are yet to be resolved.
If these are favourably viewed by WBERC, then the company can expect to come back into the black. The decision on fuel surcharge is expected to be announced by the end of March.
DPSC declared a Rs 5.95 crore loss for 2000-01 against a Rs 227 crore turnover. The company registered a Rs 14.58 crore profit before tax in 1999-2000.
The company slipped into losses because it banked on a higher tariff revision along with a more favourable transmission and distribution allowance, explained DPSC officials. DPSC's bulk supplier, Damodar Valley Corporation (DVC), had raised tariff thrice since the last revision, but the company could not pass on the rise to its consumers thanks to WBERC.
The West Bengal government could not also grant a revision of tariff since there was a change in the regulatory legislation under the West Bengal Electricity Regulatory Commission Act, 1998, which came into force from April 25, 1998. This pushed DPSC into the red.
