Power tariff plan hike in Tripura explained by Power Minister amidst rising Rising costs 

By  Firstdespatch Desk   Sep 24, 2023

Agartala, Sept 24 (FD) Tripura's Power Minister, Ratan Lal Nath, has defended the recent 5-7% hike in power tariffs, emphasising that the decision was made by the regulatory commission.
 Nath said that this adjustment was necessary due to various factors, including the significant increase in the cost of natural gas, which affects 98% of the state's power production.
 Nath pointed out that the previous power tariff increase in Tripura occurred in 2014, and with rising production and other expenses, it was unavoidable. The minister acknowledged that this hike would primarily impact domestic consumers, as the majority of power consumers in the state are households.
Tripura State Electricity Corporation Limited (TSECL) faced losses of Rs 119 crores in 2021-2022 and Rs 280 crores in 2022-2023, primarily due to escalating natural gas prices. The financial loss for the first three months of 2023–2024 already stands at Rs 80 crore. To prevent bankruptcy, the tariff hike became necessary.
 TSECL's Managing Director, Debasish Sarkar, explained that the gas cost had risen by 196%, affecting the operation of gas-based power plants.

Despite the hike, the tariff increase will only address a portion of the revenue deficit. TSECL plans to seek financial support and enhance service efficiency to mitigate losses.