RERC Declines To Allow Lower Tariffs for Private Hospitals In Rajasthan

RERC declined to approve special tariff for private hospitals in Rajasthan.

RERC declined to approve special tariff for private hospitals in Rajasthan.

In its latest order, the Rajasthan Electricity Regulatory Commission (RERC) declined to give any relief to the Indian Medical Association (IMA). The Rajasthan IMA branch had filed a review petition before the RERC to review its earlier order passed on March 31, 2023. The earlier order had also rejected the demand of a special tariff for private clinics in the state. 

The petitioner represented Rajasthan’s private hospitals, clinics, and nursing homes. IMA claimed that the tariffs charged from the private healthcare institutions in the state were at par with those charged to shopping malls and other large commercial power consumers. It pointed out that government hospitals were charged lower rates at the same time. 

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In the petition before the RERC, IMA demanded a review of its earlier order and batted for charging private healthcare entities under a special category to ensure lower tariffs. Currently, they are charged under the ‘non-domestic category,’ which allegedly makes the power bills of private hospitals exorbitant. IMA pointed out that as these entities render essential services and also work to extend several government schemes, they ought to enjoy non-commercial power tariffs. 

The RERC, however, claimed that the petitioner had raised the same issue earlier, and a similar plea was rejected by the RERC then. It also said that tariff orders could be amended in rare conditions on very important occasions. The RERC has already issued the tariff orders for Rajasthan for FY23-23, keeping in mind the record books of the discoms and after undergoing detailed deliberations and public hearings.

IMA, meanwhile, to bolster their points, also cited the examples of states like Karnataka, where the private healthcare industry enjoys special tariff privileges. It also cited another related judgment of APTEL into the issue.

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“Petitioner also submitted that the Hon’ble Appellate Tribunal for Electricity (APTEL) in the state of Maharashtra had quashed the State Electricity Commission” s refusal to categorize private hospitals/healthcare providers differently from the residual category and had directed the State Commission to classify the hospitals, educational institutions and spiritual organizations which are service oriented and put them into a separate category for the purpose of determination of tariff,” the details of the case as mentioned in the written order of RERC read.

The RERC order referring to its past order on the issue said, “The said decision is a conscious decision of the Commission and there is neither any error apparent on the face of record nor there is any ground available to the petitioner as provided under order 47 Rule 1 CPC in respect to the impugned order.”

It also added, “Though the learned counsel for petitioner tried to justify their case with her lengthy arguments based on various grounds on merit which have already been considered by the Commission while issuing order dated 31.03.2023 but she couldn’t bring an error apparent on the face of the record or any other sufficient ground for review. Hence the Commission is of considered view that the review petition, filed by the petitioner, is devoid of any substance and liable to be rejected, hence rejected.”

According to the tariff order for FY24, in Rajasthan, a small domestic consumer pays Rs 3.85/unit for use of upto 50 units per month whereas a general domestic consumer having a consumption upto 150 units a month pays at Rs 4.75/unit for first 50 units of the power while Rs 6.50/unit for using more than 50 units per month. For a domestic consumer having consumption more than 500 units a month the tariff is Rs 7.95 per unit.

However for the non-domestic consumers, the tariff is Rs 7.55 per unit for the first 100 unit consumption of power and it goes on to Rs 8.95/unit if the consumption is more than 500 unit per unit. The fixed charges are also higher for the non-domestic consumers. These private hospitals fall under this category and pay their power bills based on these tariffs, approved by the RERC.