The Energy Regulatory Commission (ERC) may go for an increase in the power tariff by 2.63 per cent from September next.

It has been learnt that the commission is mulling to introduce the system of 'lifeline tariff' and will not raise the tariff of the industry and agriculture categories as both of these are vulnerable to the impact of the current global recession, a highly placed source at ERC said.

"We have ordered the power distributing agencies not to increase tariff until next September and asked them to submit a report to the commission about their sector-wise development programmes through which they could reduce the sufferings of the consumers and systems loss, a top official at the ERC told The Independent yesterday.

The distributing companies including DPDC, DESCO, WZPDCO and REB have applied for an increase in power prices by 14.77 to 15.40 per cent. The Power Development Board (PDB) also submitted their proposals to the commission on Wednesday. The government has increased the bulk power tariff by 1.28 per cent from October 1.

It may be mentioned that in order to provide a respite to the rural and poor people from the pressure of power price increase, ERC is going to introduce lifeline tariff. It is meant for consumers who use 0 to 100 units of electricity a month. They will not fall under the tariff hike. At the same time, ERC has asked the power distributing agencies to submit their investment programme details to the commission.

ERC has conducted public hearings at different times since October last following the approval of the PDB appeal to increase the power tariff to mitigate financial crisis of the state-run organisation.

After that the commission started receiving the same prayers from the distributing agencies. During a hearing, ERC asked the authorities to take measures to reduce systems loss that may help the agencies lessen burden on the consumers to a great extent.

The commission recently examined the applications of the distributing agencies including DPDC, DESCO, REB and WZPDC. It found the Rural Electrification Board (REB) application not matching with the focussed issues. It has also asked the REB authorities to revise their application.

It may be mentioned that West Zone Power Distribution Company (WZPDC) wants to raise prices by 15.18 per cent and the REB by 11.52 per cent.
The power distribution agencies purchase power from PDB and supply it to the consumers.