Govt. to approach JERC seeking relaxation on power tariff hike

Puducherry government explores options to offset JERC electricity tariff hike, considering subsidy for domestic consumers.

In a meeting chaired by Minister for Home Affairs A. Namassivayam two days ago, it was decided to explore various options before the Puducherry government to offset the situation arising out of the decision by the Joint Electricity Regulatory Commission (JERC) to increase electricity charges for 2024-25 so as to bridge a cumulative revenue gap of about ₹ 700 crore.

Based on a petition filed by the Electricity Department, the JERC had approved a power tariff hike of 60 paise to 75 paise for domestic consumption.

Following criticism over frequent power tariff hike in the Union Territory, Mr. Namassivayam, who holds the Education portfolio as well, on Thursday held a meeting with senior officials to explore various options.

The suggestions shared during the meeting included approaching the JERC again to seek relaxation and the government stepping in with subsidy for domestic consumers. In the meantime, the Electricity Department would explore options to reduce the economic gap in the cost of purchase of power and supply, an official said.

“We will explore the option for any reduction possible under the rules of business of JERC. Meanwhile, the department will hold consultation with the Finance Department to provide some sort of relaxation to the consumers. It could be in the form of subsidy. But the decision on providing subsidy will be taken based on the overall impact it will have on the Union Territory’s fiscal situation ,” the official told The Hindu.

As per the revised rates, domestic consumers in the 0-100 units/month slab will have to pay ₹2.70/kWh; ₹4/kWh for 101-200 units slab; ₹6/kWh for 201-300 units; and ₹7.50/kWh for the above 300 units slabs. The fixed charge in the all-consumption slabs is unchanged at ₹35/kWmonth.

After the hike was approved, various political parties and social organisations issued statements criticising the AINRC-BJP government for the frequent power hike. The CPI(M) held demonstrations at various places in Puducherry.