Tripura Regulatory Commission Announces ₹0.75/kWh Green Tariff and Moderate Renewable Tariff Hike

Introduction

The Tripura Electricity Regulatory Commission (TERC) has taken an important step towards promoting renewable energy adoption in the state by introducing a Green Tariff of ₹0.75/kWh.[1] This move is coupled with a moderate average tariff hike of 7.15%, aimed at balancing the financial needs of the power sector with consumer affordability.

Explanation (Key Points)

• Green Tariff: The newly introduced Green Tariff allows consumers to opt for electricity generated from renewable sources through TSECL, at an additional cost of ₹0.75/kWh over the standard tariff. This initiative seeks to incentivize the use of clean energy and contribute to a more sustainable energy mix in Tripura.
• Moderate Tariff Hike: The average tariff hike of 7.15% translates to an increase of around ₹0.25 per unit for rural domestic consumers and less than ₹0.75 per unit for other consumer categories. This increase is primarily attributed to the rising cost of fuel, particularly gas, and the expense of procuring power from external sources.
• Rationale Behind the Tariff Hike: The TERC has carefully evaluated the tariff petition and approved a gap of only ₹10.77 Crore as against the ₹962.87 Crore claimed by TSECL. This reflects the Commission’s effort to keep the tariff hike to a minimum while ensuring the financial viability of the power sector. The hike is also necessitated by the need to cover higher T&D (Transmission and Distribution) losses and the increased power demand in the state.
• Additional Measures: In addition to the Green Tariff and tariff hike, the TERC has taken several other measures to promote renewable energy and improve the overall power scenario in Tripura. These include:
  • Directing TSECL to source cheaper power and reduce losses to optimize costs and improve system efficiency.
  • Encouraging consumers to benefit from solar rooftop installations to ensure a continuous power supply.
  • Mandating TSECL to improve its complaint redressal mechanism and introduce a call-back facility for consumers who are unable to connect on the helpline number.
  • Providing an additional 1% rebate for online/digital payment of bills within five working days of the bill generation date to promote digital transactions.
  • Emphasizing the need for proper manpower planning, deployment of skilled labor, and adherence to quality of supply standards by TSECL.

Conclusion

The introduction of the Green Tariff and the moderate tariff hike demonstrate the TERC’s commitment to promoting renewable energy adoption and ensuring a sustainable and affordable power supply in Tripura. While the tariff hike may impact consumers to some extent, the Green Tariff provides an opportunity for environmentally conscious individuals and businesses to contribute to a greener future. The TERC’s multi-pronged approach, encompassing tariff adjustments, renewable energy promotion, and service quality improvement, is expected to shape a more resilient and sustainable power sector in the state.

[1] https://terc.tripura.gov.in/sites/default/files/Press%20Release%20-%20Final%20Tariff%20Order.pdf