Jharkhand State Electricity Regulatory Commission conducts public hearing
Jamshedpur, Feb 10: The Jharkhand State Electricity Regulatory Commission (JSERC) conducted a public hearing on February 10 regarding the tariff petition filed by Tata Steel Limited, the licensed power distribution entity for Jamshedpur. The hearing, held at Golmuri Club, focused on the True-up for FY 2023-24, Annual Performance Review for FY 2024-25, and Aggregate Revenue Requirement (ARR) for FY 2025-26.
The proposed changes introduce increased fixed and energy charges, prompting mixed reactions from different consumer groups.
Residential consumers will witness a notable increase in both fixed and energy charges under the proposed tariff structure. The fixed charge for domestic low-tension (DS-LT) consumers using up to 100 units per month is set to rise from ₹30 to ₹34 per connection, while energy charges will increase from ₹3.00 to ₹3.36 per unit. For consumers using above 100 units per month, the fixed charge will increase from ₹65 to ₹73 per connection, and the energy charge will jump from ₹5.15 to ₹5.77 per unit.
For high-tension (DS-HT) domestic users, the fixed charge is proposed to increase from ₹85 to ₹95 per kVA per month, while energy charges are expected to rise from ₹5.10 to ₹5.71 per unit.
Businesses and farmers will also experience increased power costs. Commercial Services (CS) will see fixed charges increase from ₹120 to ₹134 per kW per month, while energy charges will rise from ₹5.75 to ₹6.44 per unit. Meanwhile, Irrigation and Agriculture Services (IAS) will see a ₹2 increase in fixed charges per HP per month (from ₹20 to ₹22), while energy charges will increase from ₹5.00 to ₹5.60 per unit.
Industrial consumers, both in the low-tension (LT) and high-tension (HT) categories, are facing substantial hikes. – Low-Tension Industrial Service: Fixed charges will rise from ₹150 to ₹168 per kVA per month, and energy charges from ₹5.50 to ₹6.16 per unit. – High-Tension Industrial Service: Fixed charges will increase from ₹385 to ₹431 per kVA per month, while energy charges will escalate from ₹6.30 to ₹7.06 per unit.
The proposed tariff revision includes changes for institutional services such as street lighting and railway traction services. Street Lighting: Fixed charges will increase from ₹120 to ₹134 per kW per month, with energy charges rising from ₹6.20 to ₹6.94 per unit. Railway Traction, Military Engineering, and Other Licensees: Fixed charges will go up from ₹380 to ₹426 per kVA per month, while energy charges will rise from ₹6.25 to ₹7.00 per unit. Additionally, temporary connections will now be charged at 1.5 times the applicable fixed and energy charges.
To balance the impact of the tariff hike, the regulatory body has proposed several incentives: Load Factor Rebate: Consumers with a load factor above 65% will receive a 1% rebate on energy charges for each additional 1% increase in the load factor, with a maximum rebate of 15%. Prompt Payment Rebate: Consumers paying bills within five days of the bill presentation will receive a 2% discount. Online Payment Rebate: A 1% discount is offered for online bill payments, subject to a ceiling of ₹250. Voltage Rebate: Industries and consumers taking power at a higher voltage (33kV and 132kV) than the prescribed norms will be eligible for a rebate of 3% and 5%, respectively.
The hearing was chaired by JSERC members Mahendra Prasad (Member, Legal) and Atul Kumar (Member, Technical) and attended by several domestic, commercial, and industrial consumers. Senior officials from Tata Steel and Tata Steel UISL, including VP Singh (Sr. GM, Power Services & UB), Ajay Kumar (Chief, Power Management Group), and Sharad Kumar (Member, Customer Grievance Redressal Forum), participated in the session.
Suman Mandal, Chief Divisional Manager (EP&C), presented key points from the petition. He highlighted the need for a tariff adjustment to address a cumulative revenue gap of approximately ₹612 crore at the end of FY 2024. The shortfall was attributed to delays in appropriate tariff increases in previous years.
To bridge the revenue gap, Tata Steel proposed a 12% tariff hike. The adjustment is expected to raise overall revenue and help liquidate the deficit within a reasonable period.
Following the presentation, JSERC members invited suggestions, objections, and feedback from attendees regarding the proposed tariff increase. Tata Steel officials noted all inputs and provided responses during the hearing.
The detailed breakdown of the existing and proposed tariffs was shared for clarity. The tariff adjustment, if approved, will ensure financial stability for the power distribution entity and continued improvement of services for consumers in Jamshedpur. (W-mb)
