Jharkhand Electricity Distribution Company Limited (JBVDNL) may deliver a blow to domestic consumers with its proposed tariff hike for the financial year 2024-25. The company has proposed an increase of ₹2.85 per unit, raising the current rate of ₹6.65 per unit to ₹9.50 per unit.
The new tariff for electricity came into effect on March 1st. If approved, consumers will see a significant increase in their electricity bills. Additionally, the company has proposed a substantial hike in fixed charges. It’s noteworthy that the Jharkhand Electricity Regulatory Commission had announced the tariff for the financial year 2023-24 in February, which came into effect in March.
A hearing on the new tariff is likely to take place in June. The Commission will hold hearings for the tariff for the financial year 2024-25, with an announcement expected in June. The company has invited public objections to the tariff proposal, which can be submitted through their website, email, or by mail to the Secretary of the Jharkhand State Electricity Regulatory Commission.
The Commission had previously rejected the proposal to collect fixed charges based on load. However, JBVDNL has proposed collecting fixed charges based on load this time, ending the old system. Under the current arrangement, consumers with a four-kilowatt load only have to pay approximately ₹100 per month.
If the proposed tariff is implemented, consumers could be required to pay around ₹400 per month in fixed charges alone. However, the Commission had previously rejected the proposal to collect fixed charges based on load.
JBVDNL has stated in its tariff proposal that it will purchase electricity worth ₹5,460.55 crore in the financial year 2023-24 for supply. In contrast, electricity worth ₹7,905 crore will be purchased in the financial year 2024-25. Additionally, with other expenses, a total of ₹10,502.16 crore will be required.
The proposed tariff hike and changes in fixed charges are likely to have a significant impact on consumers, necessitating careful consideration and public feedback.
