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AP: Power tariffs hiked for all but the poorest

News18

Updated: December 27, 2011, 12:09 PM IST
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AP: Power tariffs hiked for all but the poorest
HYDERABAD: Power utilities on Monday pitched for a massive tariff hike that would leave only the lowest slab of power consumers un..

HYDERABAD: Power utilities on Monday pitched for a massive tariff hike that would leave only the lowest slab of power consumers untouched, and raise Rs 4,950 crore for themselves. The tariff hike will affect consumers in 10 sectors including lowtension (LT) domestic, LT commercial, LT industrial, hightension (HT) industrial, HT ferro alloys and HT commercial.After a daylong exercise on Monday, the discoms filed their annual revenue requirement (ARR) and tariff proposals for financial year 201213 before the AP Electricity Regulatory Commission (APERC) after approval by chief minister Kiran Kumar Reddy. The power regulator will issue a tariff order effective from April 1, 2012.

The discoms estimated an energy requirement for next year at 93,913 million units (MUs). Availability from approved power stations is likely to be around 81,464 MU. This would leave a deficit of 12,449 MUs. To bridge the deficit, the discoms intend to make medium and shortterm purchases.

The power establishment's annual revenue requirement is around Rs 35,062 crore but projected revenue from current tariffs is likely to add up to only Rs 24,009 crore. That would leave a gap of Rs 11,053 crore, which the government would either have to subsidise or allow the discoms to raise tariffs. Exercising the latter, option, the discoms propose to realise additional revenue of Rs 4,950 crore through a hike in tariffs. This will bring down the revenue deficit to Rs 6,103 crore.

As regards lowtension domestic power consumers, the tariff hike will touch those using more than 100 units per month. These number 48.45 lakh consumers, 24 per cent of the total.

The discoms said they were constrained to increase tariffs because of the yawning revenue deficit, primarily due to increases in the cost of power, coal and gas purchases. There had been no major tariff revisions in the last nine years except a marginal increase for some restricted categories in 201011, they said. The discoms said that in making these proposals they took care of the interests of the poorer sections of society.

Out of the total 2.57 crore power consumers in the state, 1.42 crore, including 29.8 lakh farmers, would be unaffected by the tariff hike.

First Published: December 27, 2011, 12:09 PM IST
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