KOLKATA: The Chairman of Central Electricity Regulatory Commission, Dr Pramod Deo, today said the merchant power tariff may increase this summer. This is largely because of the rise in fuel costs.
“We are monitoring the merchant tariff. The tariff is showing a tendency to move up when compared to the last season. However, I cannot say to what extent the tariff should rise,” Dr Deo told newspersons in Kolkata. He was in the city to address a seminar organised by the city-based MCC Chamber of Commerce and Industry.
Asked about the under-recovery in the distribution sector, he said there was a significant improvement in the situation following the “historic” order by the Appellate Tribunal asking the State regulatory commissions to determine electricity tariffs, if necessary on a suo motu basis.
“Following the order, at least 7 or 8 States — including Tamil Nadu and Rajasthan — have approached the State regulators for tariff revisions,” he said. These States were previously preventing the State distribution utilities (discoms) from filing tariff petitions.
The distribution utility in Andhra Pradesh is waiting for the State government to foot the bill for subsidised electricity, as was promised.
However, the discom of Uttar Pradesh, one of the major contributors to under-recoveries in the sector, is yet to seek a tariff revision.