Guwahati: The Assam Electricity Regulatory Commission (AERC) has recommended 1.2% reduction in the power tariff resulting a decrease in rate by 10-20 paisa per unit for FY 2023-24. The new tariff will be effective from April 1. 2023.
In the case of fixed meter charges, the AERC also recommended an increase up to Rs 75 per KW/KVA per month.

However, the AERC increased it by Rs 10. According to the AERC, "the commission accorded approval to an overall decrease of around 1.2 percent in the tariff for 2023-24 over the tariff for 2022-23, including existing FPPPA (Fuel and Power Purchase Price Adjustment) charges. The Commission has reduced energy charge rates for all categories, ranging from 10 to 20 paisa per unit".

According to AERC, the existing tariff for a domestic consumer who consumes up to 120 units per month is Rs 580. Under the revised tariff, consumer will have to pay Rs. 570. Likewise, for those who consume up to 240 units, the existing tariff is Rs 710. The revised tariff for such consumers will be Rs 700.

However, APDCL reported a higher distribution loss of 16.96 percent as compared to the 15 percent approved by the AERC. The higher distribution losses have resulted in a higher power purchase cost of Rs 116 crore, of which Rs 38.91 crore is passed on to the consumers. The AERC, after considering all representations, written submissions, and issues raised by stakeholders and the prayers of the utilities, has taken a conscious view while issuing the tariff order for utilities for the financial year 2023-24, The Commission has taken the utmost care to protect the interests of consumers as well as utilities in arriving at its decision," the Commission reported.

Sources further pointed out that the average cost of power supply will be much less than what APDCL had projected. APDCL projected the average cost of power supply as Rs. 10.07 per KWh, but according to the commission it is around Rs. 8.02 per KWh.

The Commission further reported that the hike in the rate of natural gas as shown by the APDCL in the international market is less now.

Instead of bringing down the distribution loss and taking cost-cutting measures, the APDCL tried to impose the burden of their revenue gap on the consumers every year. APDCL also gets a huge amount in grants from the government every year. The State Government converted grants into equity of Rs 862 crore, Rs 317 crore, and Rs 348 crore in 2021-22, 2022-23, and 2023-24, respectively, for the APDCL.

The AERC also mentioned the tariff details for other categories.

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