Industrial Power Tariff Hike: WBSEDCL Says Proposed Rise Capped To DVC Area, Rates Still Competitive

Industrial power tariffs in parts of West Bengal are set to rise from September 1, with the state electricity distribution company saying the hike will be limited to consumers in the Damodar Valley Corporation (DVC) command area, and that rates will remain competitive even after the increase.

The clarification comes amid concerns from steel industry stakeholders, who have urged the state government to roll back the proposed hike, contending that higher electricity rates could affect production costs and undermine efforts to attract fresh investment.

Sumit Mukherjee, Director (Distribution) of West Bengal State Electricity Distribution Company Ltd (WBSEDCL), told PTI that the planned tariff hike would apply only to industrial consumers in the DVC command area.

"Even after the proposed increase, our tariff will remain ₹1 per unit lower than that of DVC. Earlier, the gap was ₹2 per unit," Mukherjee said.

The revision entails an increase of ₹1 per unit for 33 KV connections and ₹1.5 per unit for 11 KV connections from September 1.

"At present, the rate is ₹4.70 for 33 KV, which would rise to ₹5.70 per unit, an increase of more than 20%. This tariff was fixed only two to three years back," Steel Re-Rolling Mills Association of India (SRMA) chairman Vivek Adukia told PTI.

Mukherjee said the tariff applicable in the rest of West Bengal, outside the DVC command area, is over ₹7 per unit for industrial consumers.

WBSEDCL has two tariff regimes. In the DVC command area, WBSEDCL and the Corporation have a common distribution licence, covering areas on both sides of the Damodar river in parts of Burdwan, Howrah, Hooghly and Bankura. Outside the DVC command area, WBSEDCL is the sole distribution licensee and follows a separate tariff structure, officials said.

Discussions on the tariff issue were also held during a recent meeting of a joint delegation of the SRMA and the West Bengal Sponge Iron Manufacturers Association (WBSIMA), and the state’s Industry Minister Tapas Roy. PWD and PHE Minister Ajay Poddar was also present.

The delegation, led by Adukia and accompanied by promoters of several steel companies, argued that the proposed increase would raise costs for energy-intensive steel units at a time when the BJP government is seeking to improve the investment climate and attract fresh capital into West Bengal.

Association sources claimed that the ministers assured the delegation that the increase would not exceed 50 paise per unit. SRMA and WBSIMA, however, have sought a complete waiver.

"We have received their prayer and forwarded it to Chief Minister Suvendu Adhikari. But, there was no assurance from our end to the industry," Roy told PTI.

The delegation also sought an annual allocation of 10 million tonnes of high-grade coal from Eastern Coalfields Ltd to sustain sponge iron production.

It also asked for 15-20 million tonnes of iron ore fines and lumps from the Odisha Mining Corporation, routed through the West Bengal Mineral Development and Trading Corporation.