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News Brief | March 2016

CESU seeks hike in power tariff

Projecting a revenue deficit of Rs.1065.92 crore during 2015-16, the Central Electricity Supply Utility (CESU) has demanded hike in retail supply tariff to recover the cost. In its annual revenue requirement (ARR) application for the ensuing financial year, the power distribution utility has estimated the revenue requirement at Rs.4071.84 crore. Assuming average eight per cent distribution loss at high tension (HT) level and 29.90 per cent techno-commercial loss at low transmission (LT) level, the distribution licensee has estimated bulk power purchase of 8904.87 million unit (MU) and sale of 6085.94 MU for their retail business for 2016-17. The utility has estimated a requirement of Rs.695.62 crore for wheeling of 7938.33 MU power (after deducting 966.54 MU for EHT sale) in its distribution network. However, it will generate a revenue of Rs.586 crore from the wheeling business at the current rate of 73.82 paise per unit resulting in loss of Rs.109.61 crore. CESU has demanded the wheeling tariff be raised to 87.63 paise for unit while deciding the tariff for next fiscal. The revenue requirement of CESU for the retail supply business in the financial year 2016-17 is estimated at Rs.3471.26 crore (including the reasonable return) with the prevailing bulk supply tariff.
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