In a significant development, consumers across Jamshedpur are bracing themselves for potential financial strains as the local utility company Tata Steel proposes a hike in power tariffs. The proposed increase, if implemented, is expected to impact households, businesses, industries prompting concerns over escalating electricity bills and its broader economic ramifications.

The proposal, unveiled by the utility company, outlines adjustments in both fixed charges and energy tariffs across various consumer categories. Under the proposed tariff structure, consumers may face higher fixed charges for electricity connections, in addition to increased rates per unit of energy consumed.

For domestic consumers, the proposed hike translates into higher monthly fixed charges, with rates varying based on consumption levels. Moreover, energy charges per unit are set to rise significantly, potentially adding to the burden of household budgets already strained by rising living costs.

Outlined below are the proposed changes in the tariff structure: Fixed Charges:

For Domestic Services (DS): DS-LT (0-100 Units): Existing - Rs. 30 per connection per month, Proposed - Rs. 33, DS-LT (Above 100 Units): Existing - Rs. 65 per connection per month, Proposed - Rs. 72, Domestic Services - HT: Existing - Rs. 85 per kVA per month, Proposed - Rs. 94

For Irrigation & Agriculture Services (IAS): Existing - Rs. 20 per HP per month, Proposed - Rs. 22, For Commercial Services:Existing - Rs. 120 per kW per month, Proposed - Rs. 132, For Industrial Services (LTIS and HTIS):

LTIS: Existing - Rs. 150 per kVA per month, Proposed - Rs. 165, HTIS: Existing - Rs. 385 per kVA per month, Proposed - Rs. 424, For Institutional Services (Streetlight, Railway Traction Services, MES & Other DL):

Streetlight: Existing - Rs. 120 per kW per month, Proposed - Rs. 132, Others: Existing - Rs. 380 per kVA per month, Proposed - Rs. 418

Energy Charges:Energy charges per unit (kWh) are also set to increase across various consumer categories, potentially adding to the financial burden of consumers.

Jharkhand State Electricity Regulatory Commission convened a public hearing at 11:30 am at the Golmuri Club, near Golmuri Golf Course, to discuss the tariff petition of Tata Steel Limited, the Power Distribution Licensee for Jamshedpur's licensed area. The hearing addressed the True-up for FY 2022-23, the Annual Performance Review of FY 2023-24, and the Annual Revenue Requirement (ARR) for FY 2024-25.

Chaired by Justice Amitav Kumar Gupta, along with Mahendra Prasad and Atul Kumar, Members Legal and Technical respectively, of the Jharkhand State Electricity Regulatory Commission, the public hearing saw attendance from several domestic, commercial, and industrial consumers. Notable attendees included  VP Singh, Senior General Manager of Power at Tata Steel UISL & UB, and  Ravi Kumar, Chief of Power System and Energy at Tata Steel, along with other officials from Tata Steel and Tata Steel UISL.

 Suman Mandal, Senior Divisional Manager (EP&C), presented the key points of the petition before the Commission, emphasizing the need for tariff adjustments to recover costs. Tata Steel proposed tariff adjustments aimed at aligning the tariff closely with the cost of supply and recovering the revenue gap. The proposed adjustments are expected to increase the overall revenue by approximately 10%, aiding in the recovery of the cumulative revenue deficit.