Tripura Power Minister addresses tariff increase amidst soaring global gas prices

By  Firstdespatch Desk   Sep 27, 2023

Agartala, Sept 27 (FD) Today, in a press conference held at the civil secretariat, Power Minister Ratan Lal Nath addressed the mounting challenges faced by the state-owned Tripura State Electricity Corporation Limited (TSECL) due to the significant surge in global gas prices. Minister Nath acknowledged that these rising gas costs have added considerable strain to TSECL's financial stability, leading the Tripura Electricity Regulatory Committee (TERC) to implement an increase in power tariffs.

Minister Nath said that despite the tariff adjustment, TSECL is projected to continue operating at a deficit, primarily because of the substantial gap between revenue generation and expenditures. Nevertheless, he expressed optimism about turning the tide and transforming TSECL into a profitable government enterprise. This transformation will be achieved through strategic initiatives such as streamlining billing processes and taking timely actions to curb power theft.

Minister Nath highlighted the historical context of tariff adjustments, revealing that tariffs had been revised multiple times during the tenure of the Left government, resulting in an aggregate tariff increase of 134 percent. However, no adjustments were made until 2023. Following a rigorous process, including public hearings and consultations with consumers and advisory bodies, a seven percent increase was mandated by the regulatory body.

Explaining the root cause of the price surge, Nath pointed to the sharp increase in gas prices, which rose from 2.90 US dollars to 8.57 US dollars per MMBtu (Metric Million British Thermal Unit) in 2022–23, marking a staggering 196 percent increase. This surge significantly impacted TSECL, which relies on gas for thermal power production.

Minister Nath assured consumers that despite the tariff adjustment, diligent bill payers would receive a flat five percent rebate if they settled their bills within seven days of receiving a fresh statement. This effectively meant that the rise would only amount to two percent for these consumers, who would ultimately benefit from this rebate. FD SB