8.         RATIONALISATION OF TARIFFS 

8.1       Basis of Rationalisation
The Commission has tried to rationalise the existing tariff structure keeping in view the interests of the consumer and the Board and striking a balance between consumer categories as well. The consumer will like the tariff to be simple and unambiguous. For the Board, the tariff should be convenient for billing and accounting and designed to minimise possibilities of loss to the Board through pilferage, and tampering of meters. The tariff for the presently subsidized categories needs to be revised to bridge the gap progressively between the cost of supply and the tariff. The cross-subsidy provided by certain consumer classes also, needs to be brought down progressively. 

8.2       FCA Charges 
The Board has proposed merger of FCA charges in the tariff. All the LT and HT consumers have represented against such merger. In the petition, the Board has admitted that present FCA formula is not based on scientific principles and it has been proposed by Board to redesign the FCA formula and submit the same to the Commission. Considering the above, the Commission has not allowed the merger of FCA with tariff. It further directs the Board to bring up the new formula based on scientific principles at the earliest and in any case before filing the next tariff petition. 

8.3       LT Tariffs

8.3.1    Domestic Consumers 

8.3.1.1 The existing tariff has three slabs. It is to increase the slabs to five in order to have the initial slab for life line consumers upto 50 units/month at cheaper rate and a higher rate for high end consumers consuming more than 400 units/month. 

8.3.1.2 The cost of supply for LT consumers for the year 2001-02 works out to 432 paise / unit. The domestic tariff has been structured so as to protect the interest of the weaker sections. However, this is subject to minimum charge of Rs. 50 per month for single phase connections and Rs. 150 per month for three phase connections. 

8.3.2    Single Light Point (SLP) Connections 
The State Government has agreed to pay the bills of SLP consumers of SC/ST category below poverty line upto 20 units per month. The billing will, however, be subject to monthly minimum charges. Those SLP consumers who are no more eligible for free supply be provided with meters as early as possible. Till then, monthly billing should be done for 60 units per connection per month or as per assessed consumption on the basis of actual connected load or 21 percent load factor whichever is higher. Also in case of SLP SC/ST consumers below poverty line, if the assessed consumption based on actual connected load or 21% LF, is found more than 20 units per month, then the extra amount, shall be recovered from the consumers. 

8.3.3    Non-Domestic Tariff
The existing tariff has two slabs namely upto 200 units/month and above 200 units / month. It is proposed to retain two slabs but lower the limit of the first slab to 100 units per month so as to limit the bensefit of lower tariff to the small non-domestic commercial consumers only. The minimum charges are also decided to be rationalised making distinction between single phase consumers (essentially small commercial consumers) and three phase consumers (larger commercial establishments). 

8.3.4    X-Ray Plants
This tariff category is applicable to stand-alone X-ray plants only. The number of such plants is small as, in general, X-ray plants are installed in establishments having other equipments such as Cat-scan and MRI machines. Such larger establishments come in the category of hospitals or commercial establishments. The energy charge for X-ray plants is decided to be raised nominally. The minimum charges for single phase and three phase supply are also proposed to be increased. 

8.3.5    Water - Works (LT Supply)
The energy charges are taken to be increased, keeping minimum charges unaltered.

8.3.6    Public Street Lighting
The existing energy charge is  to be increased to bring it closer to the cost of supply. The minimum charges, at present, are based on assessment of actual consumption from total wattage of lamps and minimum burning hours. This assessment is not practical and leads to disputes.  Therefore, Commission has taken to change the minimum charge based on units per kilowatt of connected load separately for village panchayats and others.

8.3.7    Electric Crematorium
The Commission maintains the existing energy charge and the tariff minimum charge. 

8.3.8    Agricultural Consumers 
Agricultural consumers on flat rate basis are to continue till meters are installed. Considering the importance of agricultural sector in developing the economy of the State, the existing tariff of 100 P/Unit for metered connections has been increased nominally. For flat rate tariff, four slabs have been retained with nominal increase in tariff. The present minimum charges of 360 units / HP / annum have been maintained for metered category. All un-metered agricultural connections be provided with meters within the next three years. 

8.3.9    LT Industries 

8.3.9.1 Considering the interest of small flour mills / huller upto 15 HP. The tariff for this category has been increased only nominally. The tariff of other LT industries upto    25 HP affecting small entrepreneurs has also been kept lower than the cost of supply.

8.3.9.2 Considering the problems of small power looms upto 25 HP, their tariff has been kept comparable to that of lower slabs of domestic tariff. No change in minimum charge has been made. 

8.3.9.3 Application of different tariffs to different consumer classes has been detailed in Annexure V.