Power tariff likely to rise by 20%

With what seems to be inevitable in this `age of inflation,' power tariff across the country including the national Capital is likely to rise by about 20 per cent. The Thirteenth Finance Commission (TFC) report tabled in Parliament last week has strongly recommended a substantial hike in power tariff structure across the country including Delhi which may see a hike of 15 per cent. The report states that a 7-19 per cent tariff hike is essential to ensure "sustainability and growth of the electricity distribution system."

The TFC report tabled on February 25 has favoured upward revision of power tariff by all state power distribution utilities to prevent them from adversely impacting the finances of states.

The report further said that the tariff increase should be accompanied by enhancement of operating efficiencies of utilities and reduction in overall transmission and distribution losses. "Absence of timely tariff increases has increased the gap and has impaired utility operations further. Some states have not raised tariffs for the past eight to nine years in spite of increasing deficits," the report says.

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