Highlanders residing in communities of Laya, Lingzhi, Merak and Sagteng will enjoy free electricity up to 200 units from this month. It is to improve the living standard and welfare of people in remote areas. The 200 units free electricity came in as a new subsidy in the revised electricity tariff.
The government approved the revised tariff for the next three years which will come into effect from October.
“They have a very important responsibility besides living in a very harsh condition. They still use fuelwood for heating and cooking purposes. All this fall on women and children who collect firewood and who are there in the kitchen most of the time with smokes, burning of fuel and are at higher risk of respiratory ailments and other health issues. All such issues will be addressed if such provisions are provided,” Loknath Sharma, the Economic Affairs Minister, said.
While maintaining the rural subsidy of 100 units free electricity per month, the revised electricity tariff increased the low voltage block II range to 500 units from 300 units without any change in the present tariff of Nu 2.68 per unit. The current tariff was increased by three per cent annually in the last cycle.
Lyonpo Loknath Sharma said with the increase in range for low voltage block II, domestic households and especially those in urban areas will see a decrease in their electricity cost in winter.
“Most of the urbanites who are here and who use it for the domestic purpose will fall in this category. So your units have now increased by 200 more, from 300 to 500. And in this, we have not changed the tariff. The previous tariff was 2.68 and it is maintained. Most of our users will fall into this category. We are doing this to encourage people to use electricity as cooking fuel and reduce dependency on LPG cooking fuels.”
For those falling in the block III category meaning who uses beyond 500 units of electricity and low voltage bulk users such as the army and police colonies, the tariff is increased by 1 per cent annually from the current tariff.
For the medium voltage users such as industries, the tariff is increased by 10 per cent annually. The economic affairs minister said it’s the highest increase in this tariff cycle despite the government’s effort to contain its increase by providing a subsidy. Without subsidy, it would be a 26 per cent increase in tariff. The government will be paying more than Nu 85 M in subsidy for the medium voltage users.
The government will be bearing close to Nu 1.5bn as subsidy for the next three years for low and medium voltage consumers.
Phub Gyem
