Shimla: Amid outcry over the Himachal Pradesh authorities’s resolution to levy a water cess for hydropower era and its doable impression on shoppers within the type of a tariff hike, the cash-strapped state introduced Friday evening that it’s going to pay subsidy to the state electrical energy board.
The Himachal Pradesh Electrical energy Regulatory Fee (HPERC) Friday issued an announcement that the water cess would impression shoppers by Rs 1.20-1.30 per unit along with the present tariff. Naresh Chauhan, principal adviser to Chief Minister Sukhwinder Singh Sukhu, instructed ThePrint the CM had made it clear that customers wouldn’t be burdened as a result of water cess, and the Rs 1.20-1.30 per unit cess assessed by HPERC shall be borne by the federal government, which might quantity to round Rs 250 crore.
The state electrical energy board had filed a petition earlier than HPERC for elevating the ability tariff by 86 paisa per unit in February. The ability regulator took the decision on 31 March and elevated the ability tariff by 22 paisa per unit for the state’s shoppers.
The Himachal Pradesh authorities has imposed cess on water utilized by hydro energy initiatives within the state. The cess of 10 paise per cubic meter shall be charged on hydroelectric initiatives with head (the peak distinction between the place water enters into the hydro system and the place it leaves) as much as 30 m; 25 paise per cubic meter for 30-60 m; 35 paise per cubic meter for 60-90 m, and 50 paise per cubic meter for above 90 m.
There are 172 hydro energy initiatives in Himachal, and the imposition of water cess is anticipated to generate a income of round Rs 4,000 crore.
Nonetheless, in line with former MD, Uttarakhand Jal Vidyut Nigam Restricted, S.N. Verma, if the federal government has to pay subsidies to bear the impression of water cess, then talks of income era might be an newbie concept.
“Cess on water used for irrigation, consuming functions by different states will be justified because the water is consumed. Himachal has imposed cess as a transfer to fill its coffers, but when it has to pay subsidies to neutralise the impression on shoppers, then it’s actually not a good suggestion for useful resource mobilisation,” Verma instructed ThePrint.
Bonafide Himachali’s Hydro Energy Builders Affiliation president Rajesh Sharma argued that it’s impractical to anticipate energy era firms to bear the burden of the cess with out rising electrical energy tariffs. “The ability regulator has assessed the minimal impression of the water cess,” he instructed ThePrint.
Requested concerning the impression this transfer might have on the opposite states buying energy from initiatives in Himachal, principal adviser to CM, Chauhan, stated, “The CMs of Punjab and Himachal Pradesh have determined to have a chief secretary-level deliberation on the difficulty.”
A senior bureaucrat serving within the Himachal authorities additionally defined that the state’s energy regulator has assessed the impression over Rs 1 per unit and the identical impression goes for different states’ buying energy.
“This could result in opposition. To this point, states have been anxious solely concerning the water cess, nevertheless it might additionally result in energy tariff hike, or these governments should bear the brunt like Himachal Pradesh,” the bureaucrat who spoke on situation of anonymity, instructed ThePrint.
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Free energy scheme for consumption
Apart from giving subsidy to the state electrical energy board, the state authorities has additionally determined to proceed the free energy scheme for consumption upto 125 items.
The state electrical energy board has greater than 22 lakh shoppers, of which round 15 lakh have been paying zero invoice as they fall within the class of 0-125 items per 30 days consumption.
“Power costs prevailing at current shall improve by a really nominal fee of twenty-two paise per unit for all classes of shoppers besides electrical automobile charging stations for which it has been elevated by 12 paise per unit solely,” an HPERC spokesperson stated in an announcement, including that the general electrical energy tariff improve is lower than 4 per cent for FY 2023-24.
The fee has estimated Rs 6,595 crore because the annual income requirement (ARR) for THE HP state electrical energy board restricted for FY 2023-24. “The common value of provide for HPSEBL (Himachal Pradesh State Electrical energy Board Restricted) after truing up is estimated at Rs 5.82/unit for present fiscal,” the state energy regulator’s assertion reads.
The fee has authorised Rs 5.27 paisa per unit for consumption of 125-300 unit per 30 days, and after the federal government subsidy of Rs 1.10 per unit, the patron exceeding the 125 unit consumption has to pay Rs 4.17 paisa per unit.
(Edited by Richa Mishra)
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