HPERC Electricity Tariff for 2016-17

HPSEBL recently proposed a tariff increase of about 33% with the projected additional revenue requirement of Rs. 1556.70 Crores for 2016-17. The Himachal Pradesh Electricity Regulatory Commission after hearing the stake holders accepted additional requirement of Rs. 154.48 Crores and the corresponding increase in tariff.

The table given below depicts the marginal increase in the tariff for domestic category:

The order can be accessed here.

MPERC determines retail tariff for FY15

Madhya Pradesh Electricity Regulatory Commission (MPERC) through an order (dated 24th May 2014), has determined the retail tariff for FY 14- 15.       

The new tariff determined for FY15 is same as it was for FY14, The summary of the new tariff for INDUSTRIAL, NON-INDUSTRIAL consumers can be found in the table below –


Wheeling Charges –


Transmission Charges – T
he transmission charges for FY 14-15 has been calculated as Rs .48 per unit, applicable for a consumer having contract demand of 1MW or above. 

Cross-subsidy surcharge – The Cross-Subsidy Surcharge has been computed as Rs .39 per unit.

Transmission losses – The transmission losses for FY 14-15 have been calculated as 3%.

Aforementioned wheeling charges and cross subsidy surcharges are not applicable to consumers availing open access from renewable sources of energy.

The details on this tariff can be read on Page 189 of the Retail Tariff

Our latest Blog post on the retail tariff can be read here

Contributed by – Dheeraj Babariya

Rs.1.5 lakh crore loan recast for Discoms

In a recent article covered by The Times of India , it mentioned that the centre has agreed to provide loan to power distribution companies as their status at present is very low financially . In this restructuring exercise the centre has planned that state governments and the utilities take over the entire burden of Rs 1.5 lakh crore, instead of banks taking over half the liability.

The decision to restructure the power sector liabilities was taken at a meeting at the Prime Minister’s Office.The state governments will issue bonds of about Rs 1.5 lakh crore along with the discoms.

The package was approved after the finance ministry agreed to a staggered restructuring under which state governments, which will bear 50% of the burden, will issue bonds to banks in line with the dues. These bonds will fetch banks interest of 9-10% and will have a maximum 10-year term, said sources. In the process, short-term loans extended to the discoms will become longer tenure loans.

The restructuring was necessary as the discoms were under financial crunch and they are finding it difficult to pay their dues to the lenders. The state governments are not allowing to increase the electricity prices whereas the cost on the other side has gone up resulting in stagnant revenues and losses.

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