Excelsior Correspondent
JAMMU, Apr 27: State Electricity Regulatory Commission’s decision to hike the power tariff by over 12 per cent for Non-Domestic (Commercial) category and average 8.5 per cent for all categories of consumers in the State would drastically hit core industries and commercial establishments, Jammu Chamber of Commerce and Industry said today.
As claimed by the Commission, the tariff is at par with what it declared last year, but the Chamber refuted all such claims citing the quality of the base data the Commission used to draw this conclusion. In addition to this an electricity duty (ED) of 22 per cent is also applicable on the total tariff. Pertinently the ED applicable in the State is the highest in the country.
The Chamber is planning to request the State Government to come up with commerce friendly Power Policy, which can facilitate commerce and industrial growth and also serve to attract investments into the State, it said. The increased power tariff change will adversely affect commerce and industry in the State, Y V Sharma, President, Jammu Chamber of Commerce and Industry said in a statement in Jammu.
He said the power thefts and losses in the State amount to 60 per cent of the total consumption and at the same time the rest 40 percent genuine consumers who are contributing 100 percent of revenue, are burdened more by this tariff increase. While the thefts and losses are still at constant and the State PDD is in deep slumber and unable to plug-in the holes, the Chamber said.
It further added, a “differential surcharge” must be levied upon the non-metered consumption in the sub-division level to compensate the genuine consumer of that area. With a burden of 60 per cent T&D losses and 22 per cent ED, the electricity in J&K amounts to be costliest in the country.
Mr Sharma said increase in power tariff would also drastically affect sustenance and growth of the businesses and manufacturing sector in J&K and most certainly lead to the eventual closure of many of the units. To support the growth and sustainability of existing industry, ‘tariff shocks’ have to be avoided and any revision of power tariff must be in line with the inflation and must be in a graded average manner over a 3-5 year period, making it viable for the industries and businesses to survive.
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