The West Bengal government wants power utility CESC Ltd to switch over to a closed loop system to improve power supply in its service area, which will require around Rs 200-300 crore over next two years.
“We want CESC to switchover from open system to loop system to improve continuous power supply," state's Power minister Manish Gupta told PTI.
The government wanted a closed loop system which would allow automatic switchover of power from another supply point in case of breakdown or a technical snag.
Open loop is manually operated and switchover to closed loop would require both hardware and software upgradation, sources said.
"This will require around Rs 200-300 crore over the next two years to upgrade to the new system. We plan to hold discussion with the management soon," he said.
CESC sources said it was upgrading its distribution system and had around 50 per cent in coverage area in the 'open loop' system.
Speaking about the CESC power tariff hike proposal, Gupta said, "How can we intervene? It is up to the West Bengal State Electricity Regulatory Commission which is an autonomous body to look into such matters".
According to the latest tariff, CESC plans to raise average electricity price in 2011-12 sharply by 26 per cent to Rs 5.98 paisa per unit over the 2010-11 price of Rs 4.73.
Of the total 26 per cent hike demanded for the year, CESC has already levied 15.5 per cent, or a 46 paise, hike from April under the monthly variable cost adjustment formula for rise in coal price. At present, CESC charges Rs 5.19 for a unit.
The tariff petition submitted by CESC is for three years from the current fiscal seeking to raise average tariff to Rs 5.98 in 2011-12, Rs 6.28 per unit in both 2012-13 and 2013-14.
The petition has been admitted by WBERC and it will take some time for an order to be issued.
