WBERC may extend tariff filing deadline CESC, WBSEB
The West Bengal Electricity Regulatory Commission (WBERC) is likely to give CESC, WBSEB and WBPDCL more time to file their future tariff petitions.
By TNN |
KOLKATA: The West Bengal Electricity Regulatory Commission (WBERC) is likely to give CESC, WBSEB and WBPDCL more time to file their future tariff petitions.
For starters, the November 30 deadline for filing tariff petitions by all distribution/generation companies in the state may be extended.
Here’s why. Since WBERC has decided to usher in multi-year tariff orders in West Bengal, it's unlikely to issue the relevant draft regulations before November.
Moreover, such regulations can actually be notified only after inviting comments from all stakeholders, which include the power distribution/generation companies and electricity consumers.
When contacted, a WBERC source hinted that the tariff filing deadline for large distribution companies like CESC and WBSEB might have to be extended beyond November 30, 2006. In fact, they will also be required to file multi-year tariff petitions with the WBERC for the first time.
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Such deferred filing of petitions could result in delayed tariff orders for fiscals 2007-08, 2008-09 and 2009-10. Under normal circumstances, WBERC issues the tariff orders before March 31. It needs to get a mini-mum 120 days to compute tariff orders (post submission of petitions) under Electricity Act, 2003.Significantly, multi-year tariff norms are slated to ring in major changes in electricity tariff fixation. Especially, since WBERC will for the first time be fixing the average tariff of distribution licencees and generation companies for three successive years in a single order.
While the draft regulations are awaited, indications are that the likes of CESC, WBSEB, Durgapur Porjects Ltd and WBPDCL will need to submit tariff petitions for financial years 2007-08, 2008-09 and 2009-10 once the extended deadline is announced by the WBERC.
At present, power tariffs are fixed annually by WBERC. While the multi-year tariff orders will peg a company’s average tariff for three years, there will be built-in provisions to factor in periodic cost hikes. Such escalations for distribution/generation companies could be on account of a hike in coal price, railway freight or the power purchase cost.
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WBERC officials have recently indicated that multi-year tariff orders will reduce uncertainty, make matters more transparent and stabilise tariff fixation in West Bengal. More importantly, all stakeholders from the generator, supplier and consumer will have a clearer picture of what power tariffs are likely to look like over a three-to-five year span.
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