Shimla, August 12: The Himachal Pradesh Electricity Regulatory Commission (HPERC) has lowered the subsidies provided to domestic power consumers, by increasing the effective tariffs. The revised tariffs provide clarification on the tariffs set for the Himachal Pradesh State Electricity Board Limited (HPSEBL) previously provided in its wheeling and retail tariff order.
The Commission clarified that the tariff was previously focused on the provision of ₹ 4.8 billion (approx. $64.3 million) for subsidies to consumers of agricultural and domestic electricity, as agreed in its 2020-21 budget by the state government.
The Commission revised its subsidized tariff for domestic users, under the terms of the Electricity Act, 2003. The revised tariff will apply with effect from 1 July 2020. The Commission has stated that the tariffs for this market group will remain unchanged from 1 June 2020 to 30 June 2020.
After the tariff revision, the effective tariff after subsidy reduction of 126-300 / kWh per month for domestic consumers, including prepaid customers, increased by 34%.
Subsequently, however, the State Electricity Board decided to reduce the rate of subsidies for domestic consumers. The HPERC clarified the lack of clarification in these amendments, and directed the board to fix these issues. The Himachal Pradesh State Electricity Board, discussed the Commission’s findings in its subsequent letters.
The Commission mentioned that if the government of the state or the HPSEBL desired to adjust the subsidy rate for these consumers in the future, they must notify the Commission accordingly. It noted that the amended tariffs will apply retrospectively starting July 1, 2020, and that the HPSEBL must modify bills based on the altered quantities of subsidies.
HPERC released the standardized levelized tariffs for solar photovoltaic projects in January for the last six months of the 2019-20 fiscal year. Most recently, the HPERC released an order for distribution firms to delay their renewable procurement duty in the state until the 2020 financial year.
The Commission also required that the sums of the subsidy be paid to the HPSEBL in advance, in compliance with the provisions of the 2003 Electricity Act, and be reconciled at the end of each year. It also ordered the HPSEBL to send quarterly reports, if any, covering all subsidy payments and unpaid amounts.
The State previously finalized the changes to its deviation resolution process law. The state commission had suggested the modifications in May 2019 and given 30 days for stakeholders to revert with their comments and suggestions. The state previously finalized the amendments to its regulation on the deviation settlement mechanism.
