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Your electricity rate going to attain increment of 10% soon


No matter whether or not you have received any increment in your job or business, state government is planning for an increment in your electricity rate by 10%.  The decision of the government regarding the final rate is awaited in next 20 days. After increasing the tariff by 16% in February 2015, regulatory authorities are on the urge of another increment in the rates to operate in the line with policies of Ujwal Discom Assurance Yojana (UDAY).

The decision of increasing the rates has been taken by Rajasthan Electricity Regulatory Commission (RERC) as a result of petition filed by various electricity companies wherein they had asked the commission to increase tariff rates in order to set-off their increasing losses. 

What is Ujwal Discom Assurance Yojana (UDAY)?

  • Another major vision of Hon’ble Prime Minister Mr. Narendra Modi for turning around the financial condition of the power distribution companies (DISCOMs);
  • Optional scheme for the states and their personal discretion to whether or not opt for the scheme; (Rajasthan supporting and opting the scheme)
  • A policy where states shall take over 75% of DISCOM debt;
  • States supporting UDAY shall be funded and supported additionally by the central government;

What the officials have to say about the increment?

“If government has to avoid any excessive hike in the tariff to off-shore the sinking financial condition of DISCOMs, these hikes shall be always on the cards and increasing the tariff is the easiest medium for government to support the revival of DISCOMs.”

Although the initiative taken by the Prime Minister and cabinet is critical at this time, but it may somewhere be very helpful in turning around the power sector. But this scheme shall need enormous support of the state governments and the DISCOMs.

 


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