WBSEDCL approaches WBERC to discuss tariff hike

KOLKATA: West Bengal State Electricity Distribution Co Ltd (WBSEDCL) feels the last tariff hike cleared by West Bengal Electricity Regulatory Commission (WBERC) will be grossly inadequate for meeting its mandatory additional expenses of a whopping Rs 800-to-900 crore in 2009-10. Accordingly, the WBSEDCL has decided to approach WBERC for an interim tariff award, failing which, it could suffer heavy losses.

"We���ve decided to approach West Bengal Electricity Regulatory Commission (WBERC) for an interim award so that our additional expenditure is taken care of. We are hopeful the commission will admit our request and declare an interim tariff award, failing which WBSEDCL may have to incur net losses during 2009-10," said WBSEDCL chairman M.K. De.
Elaborating, Mr De said: "We���ve have been asked to pay about Rs 190 crore extra due to a hike in fuel costs during the past years to West Bengal Power Development Corporation (WBPDCL). Added to this, WBSEDCL has been asked to pay another Rs 326 crore on account of power received by new plants that were commissioned in the past years. The accounts for these plants for the earlier years could not be finalised since these plants were not commercially operational."

That���s not all, the cost of power purchased from the central sector has also risen, which will require WBSEDCL to shell an extra Rs 200 crore. "We will also have to pay some Rs 130 crore on account of an increase in power cost bought during the last few years from the central sector. This was not included in the tariffs in the past year," said Mr Dey.

"All these adds up to about Rs 800-900 crore for 2009-10. We are not sure how to recover this sum. WBSEDCL will try and recover a part of these cost from increase in efficiency but we are not sure if it can help offset the entire amount," Mr Dey added.

Incidentally, WBSEDCL has undertaken a business process re-engineering to improve quality of service as well as quality of power supplied to its consumers. "We plan to undertake a massive human resource development programme, adopt IT on a large scale and introduce business process reengineering."

During 2008-09, WBSEDCL registered a net profit of Rs 61 crore. When asked about the expected profits for 2009-10, Mr Dey said: "We would not like to comment on profit figures for the current fiscal."