Jamshedpur: Tata Steel Utilities and Infrastructure Services Limited (UISL) has proposed a 17 percent increase in its existing electricity tariff. A public hearing was held on Monday at Adityapur Auto Cluster by the Jharkhand State Electricity Regulatory Commission (JSERC), where suggestions from consumers were invited regarding the proposed hike. The hearing was chaired by Commission Chairman Navneet Kumar and attended by Legal Member Mahendra Prasad.
The company management has proposed an increase in fixed charges ranging from a minimum of ₹10 to a maximum of ₹115, while energy charges may rise between 60 paise and ₹1.05 per unit. Additionally, UISL has proposed a reduction of 25 paise per unit in energy charges for urban commercial consumers using up to 5 kW of electricity. A further reduction of 5 paise per unit has been proposed for railways, engineering units, and military stations.
Earlier, the company’s Chief Suman Mandal presented the True-Up for FY 2024–25 for Seraikela-Kharsawan, the Annual Performance Review (APR) for FY 2025–26, the Business Plan and Multi-Year Tariff (MYT) proposal for FY 2026–27 to FY 2030–31, along with the Annual Revenue Requirement (ARR) for FY 2026–27.
Underground Cable Damage a Major Challenge
Under its proposal, the company highlighted damage to underground cables in Seraikela-Kharsawan as a major challenge. It stated that excavation work carried out by agencies such as JUDCO, GAIL, JBVNL, and AMC Telecom had resulted in frequent cable damage. Obtaining forest clearance certificates and theft of transformer oil were also cited as significant concerns.
Company Seeks ₹935 Crore Over Five Years
UISL informed the Commission that it currently supplies 1,117.46 million units of electricity to 7,572 consumers. The company plans to spend ₹30 crore annually on capital expenditure, totalling ₹150 crore over five years. It expects its consumer base to increase to 15,568 by FY 2030–31, requiring 1,377.54 million units of power. To meet this demand, the company estimates a financial requirement of ₹935.21 crore over five years.
Tariff Hike to Follow Prescribed Formula
Legal Member Mahendra Prasad stated that although the company has proposed a 17 percent hike, the final decision will be based on a detailed audit and the prescribed regulatory formula to ensure that consumers are not adversely affected while maintaining the financial health of the distribution company.
Chairman Navneet Kumar emphasized the need for the company to reduce its Transmission and Distribution (T&D) losses. While appreciating the company’s capital investments, he stressed the importance of maintaining a revenue surplus and preventing a widening revenue gap. He noted that earlier tariff hike proposals were sometimes deferred by the Commission, but under Supreme Court directives, revenue gaps must not increase, otherwise tariff revisions may become necessary.
Stakeholders Voice Concerns
During the hearing, several stakeholders expressed strong objections:
- Santosh Khetan, former President of ASIA, demanded a refund with interest of ₹166 crore deposited as electricity duty, which was withdrawn by the High Court on January 5.
- Harsh Agarwal, an entrepreneur, questioned the projected increase in T&D losses from 1.68 percent to 3 percent in the five-year plan, stating efficiency should improve with a growing consumer base.
- Dashrath Upadhyay, Vice President of ASIA, criticized repeated installation charges when consumers seek capacity enhancement.
- Ashok Gupta, Secretary of ASIA, called for transparency in installation charges and better on-demand connection facilities.
- Santosh Singh, an entrepreneur, said applications for load enhancement remain pending for up to a year.
- Rajan Singh, another entrepreneur, raised issues regarding pending power capacity enhancement in Riddhi-Siddhi Enclave and electricity supply in Transport Colony and Sector 28.
- Sudhir Singh, former Vice President of Singhbhum Chamber, said a 17 percent hike would severely impact industrial units, citing an ₹8 lakh demand for increasing a 40 HP load.
- Anil Gupta, an entrepreneur, argued that the proposed hike is excessive, especially when monthly bills already include surcharges.
The Commission is expected to review submissions and pass its order after examining all financial and technical aspects of the proposal.
