New electricity tariff announced for 2017-18

Bhopal: Madhya Pradesh State Electricity Regulatory Commission has announced new electricity tariff for the year 2017-18. Petition was filed by three power distribution companies for requirement of revenue of Rs 32073 crore and demand of Rs 4400 crore was placed through tariff.

Separate category was made for non-metered connections of rural areas first time so that complaints related with dues can be abolished on the basis of estimated consumption. At present, bill of Rs 345 per month was being given on non-metered connections which has 200 watt load, in rural areas and it will be now Rs 200 per month after formation of new category. Similarly, Rs 300 per month will have to be paid on non-metered connections of 200 to 300 watt, on the place of Rs 345.

 The number of domestic consumers using 30 units per month is around 38 lakh. The number of consumers having electricity consumption between 31 units to 50 units is ten lakh. Regulatory commission has increased power tariff by 6.9 percent for these categories consumers. But the state government has decided that these 48 lakh consumers will not face additional burden because of additional grants.

Similarly, there will be no hike for consumers of scheduled caste and scheduled tribe and paying electricity bill up to 50 units. From seven to eight percent hike will be applicable for consumers having 50 to 300 units. There are five lakh consumers having electricity consumption more than 301 units but there will be three percent additional load on them.

State government has recommended regulatory commission to fix equal electricity tariff and continue electricity supply on flat rate to agriculture connection consumers. Electricity rate for agriculture pump connections has been increased by 13 percent in the tariff order. The state government has decided that there will be no additional load on agriculture tariff. Pump consumers will have to pay Rs 1400 per HP per year with continuing flat rate scheme. The hike on agriculture pump connections announced by the regulatory commission will not be shifted on farmers.

 State government is providing subsidy of Rs 7500 crore to power distribution companies for cheaper electricity to farmers. State government will provide additional subsidy of Rs 950 crore against 13 percent hike on agriculture pump connections as per new tariff order. This way, agriculture subsidy rate will be Rs 8500 crore by the state government and new tariff order announced for financial year 2017-18 will cause no additional burden on farmers. 

High tension electricity rate for Industries sector has been increased by 6.8 percent. But below mentioned provisions have been made to provide relief in order to encourage the industries.

•    All the new high tension industrial connections, non-industrial, shopping mall, power intensive industries, which are in H.V. -3 category are exempted from power surcharges on mentioned consumption of Re. 1 per unit or 20 percent whichever is less on full consumption.

•    10 percent rebate on power surcharge on incremental consumption to all the high tension consumers (Industrial, non-industrial, shopping mall and power incentive industries) of H.V. 3 category.

•    In order to attract captive electricity plants for purchase of power from power distribution companies, provision of rebate of Rs. 2 per unit on incremental consumption has been made. This rebate will be provided for 5 years period.

•    A rebate of Rs. 2 per unit on power surcharges has been given to high tension connections of railways for the period of 5 years. It may be mentioned that railway had stopped taking power from the distribution companies last year which has caused loss to the companies. This rebate will help providing power to the railway again.

Below given provisions have been made to encourage online payment

•    Rebate of 0.5 percent - maximum Rs. 1000 on total bill amount in case of online payment by high tension power consumers.

•    In order to encourage online payment, rebate of 0.5 percent - minimum amount Rs. 5 or maximum Rs. 20 will be applicable for low tension power consumers.

•    Rebate of 5 paisa per unit has been increased to 20 paisa per unit for domestic and non-domestic category consumers if they take pre-paid meter.

•    In addition to this old age homes, day-care centres, rescue centres and government beside orphanage run by religious trust have been included in the high tension category 6.2 to provide them electricity on low rates.-WTN