CESC tariff hike plan may add Rs 212 cr to revenue

KOLKATA: RPG Group's power utility CESC is likely to earn an additional around Rs 212 crore from the proposed hike in average power tariff to be levied on its 22 lakh consumers for the financial year 2008-09.

CESC has sought the hike through a filing with West Bengal Electricity Regulatory Commission for determination of tariff for three consecutive fiscals 2008-09, 2009-10, 2010-11, company sources said.

CESC has sought an average price of Rs 4.13 a unit for 2008-09 a rise of 38 paisa or 10.1 per cent over last year. The company has cited steep increase of both primary and secondary fuel prices for the increase.

WBERC had already allowed an interim raise of 10 paisa in tariff in March. With this, the CESC is currently charging an average tariff of Rs 3.86 for a unit.

Once WBERC delivers final order, CESC would adjust the provisional rise in tariff of 10 paisa for 2008-09. For the fiscal 2007-08, WBERC had allowed only one paisa raise in tariff. Sources said with each paisa hike in tariff the revenue effect to CESC is close to Rs 5.6 crore.

While filing with WBERC, CESC has asked a tariff of Rs 4.13 for 2008-09, Rs 4.25 for 2009-10 and Rs 4.22 for 2010-11. The company proposes to make the tariff for each year effective from the month of April.