Tripura State Electricity Corporation Ltd Seeks Power Tariff Hike to Address Revenue Gap

By  Firstdespatch Desk   May 20, 2023

Agartala, May 20 (FD) The Tripura State Electricity Corporation Ltd (TSECL) has submitted a representation to the state regulatory commission, requesting an increase in power tariffs to bridge its revenue gap, according to a senior official. The corporation highlighted the absence of any tariff increase since 2014, resulting in significant losses for the state-run power corporation.

The rising prices of natural gas, with an average increase of 196 percent in the past year, and the introduction of uniform transmission costs have adversely impacted TSECL's financial position. While the uniform transmission cost benefits larger states like Assam, it disproportionately affects smaller states such as Manipur, Tripura, and Mizoram, explained TSECL Managing Director Debasish Sarkar.

Without a tariff adjustment for the 2023-24 financial years, TSECL projects a revenue gap of Rs 1,100.60 crore. The corporation's estimated expenditure for the current fiscal year is Rs 1,968.64 crore, while projected revenue stands at Rs 868.04 crore.

The increased production cost due to soaring gas prices has further strained TSECL, with the cost per unit at its Rukhia power generation plant rising to Rs 7 from Rs 2.50. TSECL has conveyed its position to the Tripura State Regulatory Commission, emphasizing the necessity of a tariff hike to maintain a sustainable operation.

The regulatory body will determine the percentage of the power tariff hike, aiming to reach a beneficial outcome for all stakeholders. The previous revision of power tariffs in Tripura took place in 2014 and remained unchanged during the BJP-IPFT regime. FD SB PD