Amid rising concern over the poor financial health of power
distribution companies, electricity tariffs are likely to go up in many States,
including West Bengal and Karnataka, in coming months, says a report.
Power distribution companies are estimated to have incurred
a whopping loss of Rs 70,000 crore last fiscal on account of the mismatch
between tariffs and the cost of producing power.
“We expect several states including Tamil Nadu, Maharashtra,
Karnataka and West Bengal to raise tariffs by December, 2011, due to State Electricity
Boards' (SEBs) precarious financial position, improved political will and
possibly increased consumer dissent over blackouts,†according to financial
services group Motilal Oswal.
In a report this month, Motilal Oswal noted that in the past
18 months, 22 states increased power tariffs, which is a record. “This includes
the highest loss-making States such as Tamil Nadu, Andhra Pradesh, Rajasthan,
Madhya Pradesh, Maharashtra, Orissa, Punjab and Uttar Pradesh,†it added.
Last month, the Delhi Electricity Regulatory Commission
(DERC) hiked electricity tariffs by up to 22 per cent.
Source: The Business Line
Leave a Reply