| Calcutta, March 9: The Mamata Banerjee government has allowed the state-run power distribution utility to raise tariff but adherence to minimum disclosure requirements has ensured that the departure from her avowed no-hike policy has remained largely under wraps till now. Not once but twice the tariff has been increased so far this year on account of rise in coal prices — a remarkable turnaround for a government that compelled the cash-strapped distribution company to pass up as many as 10 chances to seek revision of rates linked to fixed costs. The tariff increases by the West Bengal State Electricity Distribution Company Ltd (WBSEDCL) in January and February have been put in place without approaching the West Bengal State Electricity Regulatory Commission. The tariff now rules at Rs 5.53 a unit, accounting for a cumulative hike of 82 paise per unit since January. Since the tariff hikes have been linked to coal prices (a variable, not fixed, cost), prior permission of the commission is not needed. At the end of the financial year, the commission will check if the change in the variable costs justified the revisions. "It is good that finally she (the chief minister) has given preference to economics over populism. But no one in the government wants to talk about it," said a senior state government official. "We are happy that she has allowed the hike, which should bring down the projected losses from Rs 2,200 crore to less than Rs 100 crore this financial year. But further upward revision is needed to restore profitability of the utility," added another official. The tariff revision was long overdue as the state utility was recovering only Rs 4.27 a unit till last December against the cost of around Rs 5.57. Several ministers had tried in vain to reason with the chief minister on the need to allow the utility to raise tariff and stem the financial haemorrhage. Sources said the change of heart took place over the past few months following the advice of some "apolitical" aides. Once the government gave the nod, officials cited rising coal prices (best grade rates have jumped between 70 and 90 per cent in the past year) and raised the tariff by 38 paise in January and 44 paise in February. According to the regulatory commission's norms, the utility should notify such increases through advertisements in two newspapers —one in English and another in Bengali. The advertisements were published in two newspapers but not too many consumers appeared to be aware of the tariff revisions. The Telegraph spoke to several customers of WBSEDCL — which serves around 1 crore subscribers across the state — in Salt Lake but could not come across any person who knew about the change. "I learnt about the hike only when a WBSEDCL employee handed the bill to me this morning after checking the meter at my home," a Salt Lake resident said. Mamata's no-hike policy had faced its biggest test in the immediate aftermath of the Pujas as power outages, partly fuelled by a national coal shortage, hit the state. As WBSEDCL could not clear the dues to the generating utility, coal supplies to the West Bengal Power Development Corporation Limited (WBPDCL) were affected between September and November, which compounded the problem. In December last year, a tribunal had upheld with retrospective effect the rates announced in March 2011, two months before Mamata came to power. While allowing the utility to charge the tribunal-approved rates, Mamata had tossed in a disclaimer: "You have to understand, this is not a hike, merely a restoration of the old tariff." But the changes in the past two months are hikes or reflection of the rise in coal prices. "Probably, that is why no one outside the department knows about the hike and it was kept low key. There is nothing wrong in raising charges if costs go up…. If she takes responsibility, it will be good," said an official. CESC, the private utility that serves around 25 lakh customers in Howrah and Calcutta, had announced a hike three days ago. | 
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