MP: Discoms seek 6% power tariff hike for next fiscal year to tide over ‘losses’

Brace for another power shock as discoms have sought 6% power tariff hike for the financial year 2021-22.

The hike has been sought in the annual revenue requirement (ARR) petition filed before the Madhya Pradesh Electricity Regulatory Commission (MPERC). In the petition, discoms have urged the commission to allow a 6% tariff hike in the coming financial year to bridge the estimated revenue gap of around Rs 2,500 crores, said sources.

The ARR is filed by discoms before the start of a financial year. It is determined on the basis of the estimated incomes and estimated expenditures in the coming year. If this estimated income is less than the estimated expenditure, then the discoms urge the regulators to increase the prevalent power tariff so that this income and exependiture gap is bridged, added sources.

“This is the ARR based on the estimated income and expenditures. It is quite minimal as the impact of Covid-19 is not included in it. It would be reflected in the true petition for the financial year 2020-21 by the end of this year.

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