JBVNL has filed a review petition against the 6.34% electricity tariff hike approved by JSERC, calling it insufficient. The utility seeks a 40.02% increase to cover rising costs, which may lead to further burden on Jharkhand’s power consumers.
Electricity consumers in Jharkhand may soon face higher power bills, as the Jharkhand Bijli Vitran Nigam Limited (JBVNL) has filed a review petition seeking a steeper hike in electricity tariffs than what has already been approved by the Jharkhand State Electricity Regulatory Commission (JSERC).
JBVNL, the state’s power distribution company, claims that the 6.34% tariff hike approved by JSERC on 30th April is not sufficient to meet its increasing costs. The new tariff came into effect on 1st May, increasing urban power rates by 20 paise per unit and rural rates by 40 paise per unit. However, JBVNL had proposed a much higher 40.02% increase.
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What JBVNL Demands
According to the petition, JBVNL is asking for a unit rate of Rs. 8, while JSERC has approved Rs. 6.85 per unit. The company argues that this approved rate doesn’t cover the rising costs of electricity generation, distribution, and maintenance. JBVNL has based its demand on three key components. True-up of FY 2023-24, Annual Performance Review (APR) for FY 2024-25, Annual Revenue Requirement (ARR) and tariff for FY 2025-26. The utility maintains that increasing coal prices, transportation costs, and infrastructure expenses are putting major pressure on its financial health.
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Impact on Consumers
The current tariff order has already increased electricity bills for consumers across the state. Urban households are paying 20 paise more per unit. Rural consumers are paying 40 paise more per unit. If JBVNL’s proposed revision is approved, it may lead to a much larger burden on consumers. However, the company insists that the hike is necessary to ensure reliable power supply and improved infrastructure in the state.
What Happens Next?
The JSERC will now review JBVNL’s petition to decide if a further hike is justified. This decision will have to carefully balance the financial needs of the power company with the interests of lakhs of electricity consumers. This case brings to light the bigger issue of managing rising energy costs while ensuring affordable power for the public. On one hand, JBVNL is trying to overcome its operational losses, while on the other, higher tariffs may affect household budgets, especially in rural areas.
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The Bigger Picture
This review petition highlights the ongoing challenges in Jharkhand’s power sector. It reflects the complex task of maintaining financial stability for utility companies while also protecting consumer interests. With rising coal and fuel prices, infrastructure upgrades, and growing demand, JBVNL says it needs more revenue to maintain quality supply. The final decision now lies with the state electricity commission, which will examine the petition and decide whether the tariff needs to be adjusted again.
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