Nagaland: Power department moots electricity tariff hike

An power department employees is seen doing repair atop pole in Dimapur. (Morung File Photo)

An power department employees is seen doing repair atop pole in Dimapur. (Morung File Photo)

An power department employees is seen doing repair atop pole in Dimapur. (Morung File Photo)

 

Morung Express News 
Dimapur | January 6


Another electricity tariff hike is likely, as per the latest annual Aggregate Revenue Requirement (ARR) of the Department of Power, Nagaland (DoPN). The ARR is a report/estimate submitted annually around November-December by the DoPN to the Nagaland Electricity Regulatory Commission (NERC) forecasting anticipated returns against costs and also evaluating the previous years’ ARRs. A proposal for evaluating the existing tariff schedule is also included for NERC approval. 


As a norm, the DoPN subsequently issues an abridged version of the ARR, including the proposed tariff schedule. It is published in the news papers for consumer scrutiny in the form of a public notice inviting suggestions and objections. 


As per the Public Notice published on December 17, the DoPN has proposed hiking per unit cost of energy for 2020-21. If approved by the NERC unchanged, a unit of energy in the domestic category would cost on average Rs 6, rising from the existing Rs 5.7. Consumers in the industrial category should expect an average hike of 35 paise. 
The price in the Bulk category would rise to Rs 6.6 per unit from Rs 6.3, from Rs 8.08 to Rs 8.48 in the Commercial category and a 25 paise hike in the Agriculture category. 


Pre-paid consumers should also expect hike with the DoPN proposing to increase per unit cost from Rs 5 to Rs 5.25 for Domestic, from Rs 5.8 to Rs 6.1 for Industrial, from Rs 6.3 to Rs 6.6 for Bulk and from Rs 7.4 to Rs 7.75 for Commercial. 


Meanwhile, the ARR 2020-21 has projected a total financial requirement of over Rs 1115cr to meet expenses during 2020-21. It includes Rs 298cr as cost of power purchase. 


Discounting anticipated revenue of Rs 394cr from the existing tariff and Rs 13cr from “non tariff income,” it projects a revenue gap of over Rs 700cr. 


For comparison, the projected total financial requirement for 2019-20 was over Rs 985cr, while the anticipated revenue from energy sale was Rs 407cr. The projected revenue gap for 2019-20 was over Rs 567cr.  Rs 323cr was the projected power purchase cost. 


Consumer response nil
While the objective of the Public Notice has been to consider consumer opinion to proposed changes, as per DoPN officials, it rarely gets any consumer response. According to one official, there is no record of the department receiving suggestions/objections from the public. The previous ARR also mentioned of the department receiving no response from consumers. As a result, the proposals more often than not get scrutinized and approved without any input from the consumers, the official said. 


Almost 3 weeks since the notice was published, it has yet to receive any this time as well. 


“Objections/suggestions (duly attested), if any on the ARR filings and Tariff proposals… may be filed with the Secretary, NERC, Nagaland, 341 Upper Agri Colony, Near Stella School Nagaland, Kohima – 797001 in five copies in person or through registered post so as to reach the Commission on or before 18th Jan. 2020” with the name and address of the sender, stated the notice issued on December 17, 2019. 


Copies of the ARR can be availed from the office of the Chief Engineer (D&R), Kohima.