GUWAHATI, July 21 ? The Assam Electricity Regulatory Commission (AERC) today announced the new tariff rates for all categories of consumers for the year 2004-05, effecting a hike of 2.57 per cent. The new rates will be applicable from August 1, and will include the additional tariff for four months since April because the approved retail tariff for the year was from April 2004. Briefing newsman, AERC Chairman MC Baruah said the AERC has approved the annual revenue requirement (ARR) and the tariff petition for the financial years (FYs) 2003-04 and 2004-05, with modifications as required, after considering the submissions of the ASEB, consumer groups and recommendations of the staff.
The ASEB stands to gain additional revenue of Rs 22.29 crore from this tariff hike. ?As against the ASEB?s submission calling for a hike of 39 per cent, we decided on just 2.57 per cent after combining the revenue gap for the FY 2003-04 and including it in the FY 2004-05, thereby avoiding the implementation of any tariff change with retrospective date,? Baruah said. The AERC Chairman said that while ensuring that the consumer was not overburdened with a steep hike, it was also providing the ASEB all the requirements with the stipulation that the Board improved its performance. For the small and marginal consumers who consume a maximum of 120 units of power a month, the hike has been just .6 per cent.
?The marginal increase of 2.57 per cent has been possible due to a Government subsidy of Rs 186 crore to the ASEB for both the FYs,? Baruah said. Besides, the Commission has also granted a profit of Rs 20 crore to the ASEB. He claimed that through the new tariff order the Commission had introduced initiatives that directly link the performance of the ASEB with its revenue earning potential. A graded system has been introduced for consumers in the tea, coffee, and rubber categories where the increase in fixed charges has been linked to the improvement in the supply conditions to the consumers.