Rajasthan Electricity Bill Hike: There is a burden of 47 thousand crore regulatory assets on Rajasthan’s power companies. Following the Supreme Court order, companies are preparing to recover it. In such a situation, increasing electricity bill on consumers can have a direct impact.
The consumers of Rajasthan may soon have an additional electricity burden on the pocket. The reason is the burden of regulatory assets of about 47 thousand crore rupees on the power companies of the state. After the order of the Supreme Court, now the companies have only three ways, the government itself should pay this amount, recover from consumers or seek relief from the court. This is the reason that everyone from the Department of Energy to Discom is in a dilemma.
Supreme Court order and difficult situation
In fact, in the case of Delhi, the Supreme Court recently ordered that the power companies finish all their regulatory assets in the next four years from 1 April 2024. That is, this loan will have to be repaid within the stipulated period. The problem for Rajasthan is that one and a half years have passed and now raising such a huge amount in two and a half years is no less than a challenge.
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Know what are regulatory assets?
When the cost of power companies (production, procurement, transmission and maintenance) is higher than the fixed rates and the tariff does not increase on time, then the companies do not recover the entire cost. This remaining difference is called regulatory asset. Later it is charged by increasing tariffs. Meanwhile, companies run expenses by taking loans. Officials say that due to lack of rates on time, this burden has reached 47 thousand crores.
Indication of increase in tariff petition
Discoms has proposed to put a regulatory surcharge of one rupee per unit in the tariff petition filed in the Electricity Regulatory Commission. Through this, companies want to repay their debt. However, some categories have also been suggested to reduce electricity fees. But this plan to recover such a huge amount in a short time will have a direct impact on consumers.
The Supreme Court has clarified that the State Electricity Regulatory Commission will make the roadmap for recovery and will also conduct an audit of growing regulatory assets. It will be monitored by the Electrical Appellate Authority (Aptael). Now it has to be seen what kind of formula the commission adopts and how much it directly affects consumers.
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