If the demand of Haryana Electricity Regulatory Commission (HERC) is approved by Anil Vij, Minister of Power Department in Haryana Government, then this increase in electricity rates will happen after 3 years. Earlier, the government has extended the Fuel Surcharge Adjustment (FSA) for one year. The government had increased the electricity rates by about 25 paise per unit 3 years ago. Now if the government approves the demand of the electricity department to increase the electricity rates, then it will shock about 81 lakh electricity consumers connected to Southern and Northern Haryana Electricity Corporation. The Electricity Corporation can increase electricity rates to cover the deficit of Rs 4,520 crore in Haryana state.
New electricity rates are implemented every year from April 1 in Haryana state. There has been no increase in electricity rates in the state for the last 3 years. Haryana Electricity Regulatory Commission (HERC) last increased electricity rates in the year 2022-23. The electricity department had increased 25 paise per unit for up to 150 units. At present, both South Haryana Electricity Distribution Corporation and North Haryana Electricity Distribution Corporation together are suffering line loss of more than 21%.
Proposal sent to increase electricity rates
Now North and South Haryana Electricity Distribution Corporation have sent a proposal to Haryana State Electricity Regulatory Commission (HERC) to increase electricity rates in the state to compensate for more than Rs 4520 crore. If approval is given by HERC, then electricity can become expensive in Haryana. Manohar government had increased the rate by 25 paise per unit only in 2022-25 during its ten-year tenure. This increase also happened in only one category. At that time the rate was Rs 2 per unit from 0 to 150 units. The commission increased it and fixed the tariff at Rs 2.75 per unit. There was no change in the rate of any other category. Now if the government increases the electricity rates, then it can also become a big political issue.
Formula to bridge this gap was asked
Power companies had sent a proposal of more than Rs 45 thousand 978 crore 93 lakh to the commission under ARR (Annual Revenue Requirement). At the same time, there was a difference of more than Rs 4 thousand 520 crore between the income and demand of power companies. The commission asked the power companies for a formula to bridge this gap. Usually, HERC itself has been taking a decision on the difference between ARR and revenue collection.
Under Rule-62 of HERC’s Electricity Act-2003, the commission has the right to fix electricity rates. To reduce the rates fixed by the commission, the state government has the right to give subsidy under Rule-65, but the government has to give subsidy to the corporations in advance.
Under Rule-65 of Electricity Act-2003, the state government has taken the decision of subsidy in the agricultural sector. In the state, farmers are supplied electricity at the rate of 10 paise per unit. The government gives the difference in the remaining prices to the corporations in the form of subsidy. About 6000 crores are spent annually on agricultural subsidy.
Haryana State Electricity Regulatory Commission has already conducted a public hearing on the ARR demand of the corporations on January 16. After this, a meeting of the State Advisory Committee has also been held on February 19. Now the companies have also given a proposal for the gap of 4529 crores. Orders can be given by the commission in this regard on Tuesday.
Currently this is the slab-wise tariff plan
Category Rate
-0 to 50 units Rs 2.00
-51-100 Rs 2.50
-0-150 Rs 2.50
-151-250 Rs 5.25
-251-500 Rs 6.30
-501-800 Rs 7.10
