Nagaland Power Department files petition for new tariff proposal and revenue requirements; Seeks public feedback

The Department of Power, Government of Nagaland, has filed a petition before the Nagaland Electricity Regulatory Commission (NERC) seeking approval for the Annual Revenue Requirement (ARR) for the 5-Year Multi-Year Tariff (MYT) 3rd Control Period, covering FY 2025-26 to FY 2029-30, as well as a tariff proposal for FY 2025-26.

The petition was filed on December 17, 2024, under sections 61, 62, and 64 of the Electricity Act, 2003, and was admitted by NERC on January 15, 2025. The petition invites objections and comments from various stakeholders and consumers.

The highlights of the ARR and tariff proposal submitted by the Department of Power include detailed financial projections for each year of the 5-year control period. For FY 2025-26, the projected cost of power purchase is Rs 496.47 crore, with transmission charges estimated at Rs 84.68 crore. Employee expenses for the year are projected at Rs 187.97 crore, while the cost of generation is expected to be Rs 16.45 crore. Additionally, repair and maintenance expenses are estimated at Rs 16.85 crore, and administrative and general expenses at Rs 4.31 crore. The petition also includes Rs 27.01 crore allocated for smart prepaid metering expenses.

Interest and finance charges for FY 2025-26 are projected at Rs 0 crore, with depreciation costs estimated at Rs 110.50 crore. There are no provisions for interest on working capital or return on equity, both projected to be Rs 0 crore. The total revenue requirement for FY 2025-26 stands at Rs 944.24 crore. After factoring in non-tariff income of Rs 5.71 crore, the net revenue requirement comes to Rs 938.54 crore.

The projections for the following years of the MYT 3rd Control Period are as follows:

· FY 2026-27: The projected cost of power purchase is Rs 532.29 crore, transmission charges Rs 85.12 crore, and employee expenses Rs 198.72 crore. The total revenue requirement is Rs 1013.79 crore, with a net revenue requirement of Rs 1007.79 crore.

· FY 2027-28: The projected cost of power purchase is Rs 570.69 crore, with transmission charges at Rs 91.26 crore, and employee expenses at Rs 210.09 crore. The total revenue requirement is estimated at Rs 1073.91 crore, with a net revenue requirement of Rs 1067.62 crore.

· FY 2028-29: The cost of power purchase is projected at Rs 611.86 crore, transmission charges at Rs 97.85 crore, and employee expenses at Rs 222.10 crore. The total revenue requirement for FY 2028-29 is expected to be Rs 1135.54 crore, with a net revenue requirement of Rs 1128.94 crore.

· FY 2029-30: The projected cost of power purchase is Rs 656 crore, with transmission charges at Rs 104.91 crore, and employee expenses at Rs 234.81 crore. The total revenue requirement for FY 2029-30 is estimated at Rs 1200.87 crore, with a net revenue requirement of Rs 1193.94 crore.

In addition to the ARR, the Department of Power has submitted an annual tariff proposal for FY 2025-26. The tariff proposal includes energy charges across various consumer categories. For domestic consumers, the tariff rates are Rs 5.90 per kWh for usage up to 30 kWh, Rs 6.40 per kWh for 31 to 100 kWh, Rs 7.15 per kWh for 101 to 250 kWh, and Rs 7.80 per kWh for usage above 250 kWh. Industrial consumers will face rates of Rs 7.15 per kWh for consumption below 500 kWh, Rs 7.75 per kWh for 501 to 5000 kWh, and Rs 8.25 per kWh for consumption above 5000 kWh. Bulk consumers will be charged Rs 7.60 per kWh, while commercial consumers will face rates ranging from Rs 8.15 per kWh for usage up to 60 kWh to Rs 9.85 per kWh for consumption above 240 kWh. Public Water Works (PWW) consumers will be charged Rs 8.20 per kWh, and agricultural consumers will be charged Rs 3.65 per kWh. Other categories, such as temporary connections, will also have specific rates.

Further revisions include additional tariff categories. For Category ‘A’ Domestic, the tariff for all units is proposed at Rs 6.05 per kWh. For Category ‘B’ Industrial, all units will be charged Rs 7.10 per kWh, while Category ‘C’ Bulk will face charges of Rs 7.35 per kWh. In Category ‘D’ Commercial, all units will be charged Rs 9.05 per kWh, and for Category ‘H’ Agriculture, all units will be charged Rs 3.45 per kWh.

The proposal also outlines charges for public lighting, which will be recovered from consumers of the domestic, commercial, industrial, and bulk categories at rates of Rs 10, Rs 15, Rs 20, and Rs 25 per connection per month, respectively.

Additionally, the component of ARR and other parameters proposed by the Department of Power, Govt. of Nagaland, may be increased, decreased, or amended by NERC in accordance with the requirements of the Tariff Policy, Electricity Act, or any decisions by the Appellate Tribunal for Electricity (APTEL) or the Supreme Court concerning any electricity-related matter.

Consumers and stakeholders are invited to provide written suggestions, objections, or comments on the ARR and tariff proposal. Written comments should be submitted to the Deputy Director, NERC, located near the E-n-C Office, Department of Power, A.G Colony, Kohima, with a copy sent to the Chief Engineer (D & R), Department of Power, Govt. of Nagaland, Kohima-797001. Copies of the petition and filings are available for inspection at the Chief Engineer’s office, and copies can also be obtained for a fee of Rs 200 per copy. The deadline for submitting suggestions and objections is February 10, 2025. Electronic submissions can be made to nerc.kohima@yahoo.com  and cepower1@gmail.com.

MT