WBSEB chairman Malay Kumar De (left) with Bengal Chamber of Commerce president S. Radhakrishnan in Calcutta in Tuesday. Picture by Kishor Roy Chowdhury

Calcutta, April 10: Consumers in Bengal may soon have to shell out more for electricity with distribution companies proposing an increase in tariffs. A final call on the power bill will be taken by the State Electricity Regulatory Commission in 10 to 12 days.

CESC Ltd — the private sector power distributor in most parts of Calcutta — has proposed a 6 per cent hike in its tariff. While WBSEDC, the newly formed state-run power distribution company, has not yet sent its proposal to the regulator, it’s expected that the recommendation will be on similar lines.

“We are also planning to propose a hike in our tariff following an increase in our costs. However, we will recommend a raise that is less than the current inflation rate,” said Malay Kumar De, who is touted to head West Bengal State Electricity Distribution Company (WBSEDC). De was chairman of the West Bengal State Electricity Board before its bifurcation.

“Following the bifurcation of the state electricity board from April 1, the regulator has extended our deadline to submit the tariff proposal. We have got 10 days more,” De added.

With the two power distributors in the state proposing a similar hike, the regulator is expected to raise the tariff by 5 per cent.

Quality concern

WBSEDC is undertaking a pilot project to improve the quality of electricity distributed. “To start with, we have decided to install capacitors at selective substations to reduce ‘reactive energy’ noises. In the second phase, capacitors will be installed at transformer sites on the roadside,” De said.

“According to our estimate, the installation of capacitors across our entire 1,600 mega volt-ampere transmission line will cost less than Rs 100 crore. But it will reduce our transmission and distribution (T&D) losses by 2 per cent and we can earn Rs 120 crore by reselling the power so saved,” he said.

WBSEDC will soon float tenders to install capacitors at its select substations, De said.

For the just-concluded financial year, the power board is expected to clock a sales turnover of Rs 5,800 crore in 2006-07. “Our profits for the last financial year will be higher than that in the previous year,” De said. In 2005-06, WBSEB earned a profit of Rs 81 crore.

After the bifurcation, the distribution company is expected to clock a turnover of Rs 6,500 crore, given the growth in its customer base.