Haryana's power distribution company UHBVN has not proposed any hike in power tariff for next financial year 2014-15 even as it has projected revenue gap of Rs 2,246 crore for next financial year.
Uttar Haryana Bijli Vitran Nigam Limited (UHBVN) undertakes power distribution and retail supply business in 11 districts of Haryana including Panchkula, Ambala, Yamunanagar, Kurukshetra, Kaithal, Karnal, Panipat, Sonepat, Rohtak, Jhajjar and Jind.
UHBVN has submitted multi-year tariff petition for the period 2014-15 till 2016-17 for the first time with power regulator Haryana Electricity Regulatory Commission, giving projections of power purchase cost and other significant expenditures.
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In the Aggregate Revenue Requirement (ARR) submitted with state power regulator, UHBVN has not proposed any hike in power tariff, saying that it expected to fund its gap through available funding under Financial Restructuring Plan (FRP).
"Though in fiscal 2014-15 projections, there is a projected deficit but since banks have committed to fund 50 per cent of deficit, the Nigam (UBVN) expects to fund its gap through available funding under FRP and continuation of certain FSA (Fuel Surcharge Adjustment) as proposed under FRP Plan and as such does not propose any tariff increase in 2014-15 financial year," UHBVN said in its ARR.
Under the FRP scheme, the banks will fund operational deficit of the Discoms to the extent of 100 per cent in 2012-13, 75 per cent in 2013-14 and 50 per cent in 2014-15.
However, UHBVN has sought an "appropriate tariff increase" for financial year 2015-16 and 2016-17 "to meet its cash requirement" due to the repayment of the restructure and fresh loans under FRP.
Haryana government this year had decided to take over debt liabilities to the tune of Rs 8,162.09 crore of its power utilities--UHBVN and Dakshin Haryana Bijli Vitran Nigam Limited as part Centre's bail out package for discoms.
Under the scheme, the state government was to take over the liability by directly issuing bonds or infusion of funds for amount of 50 per cent of the liabilities calculated by March 31, 2012.
In the ARR, the UHBVN has projected revenue requirement and revenue generation from power sales of Rs 9,104 crore and Rs 6,858 crore, respectively, leading to revenue gap of Rs 2,246 crore for 2014-15.
