CESC asks for 11 per cent hike in electricity tariff

RPG group power utility, CESC Ltd, has asked the West Bengal electricity regulator for an 11per cent tariff hike to offset the increase of coal prices by Coal India.

The 30-per cent hike has hit the company by around  Rs250 crore, which it would continue to suffer till the West Bengal Electricity Regulatory Commission approves its tariff revision request, according to Sanjiv Goenka, vice-chairman of CESC.

''We have asked for a raise of 40-50 paise per unit while our average tariff is Rs4.50 a unit,'' Goenka said while announcing the fourth quarter results of the company.

Goenka termed the hike  ''horrific'' and said he had been shocked by the ''arbitrary hike by the monopolistic producer.''

On 27 February, Coal India hiked prices of A and B grade coal 150 per cent while prices for grade C and below were raised 30 per cent.

''There is a need for some kind of discussion with stakeholders and also some kind of prior notice of an impending hike of coal prices by such magnitude,'' he said.