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Home News Power Sector News 15 lakhs power consumers in AP face tariff hike of up to 3-4 per cent

15 lakhs power consumers in AP face tariff hike of up to 3-4 per cent

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APFifteen lakh consumers of the 1.59 crore electricity consumers in Andhra Pradesh, including high tension industries and some other categories, will have to face a power tariff hike of about 3-4 per cent for the financial year 2017-2018.

While for high tension industrial consumers, the tariff has been hiked by 3.6 per cent, to some other industries to 3 per cent and it has been hiked by 4 per cent for a section of residuary category users by 4 per cent.

While domestic consumers consuming more than 2700 units per annum will face a 4 per cent tariff hike, rest of the domestic categories will have no tariff hike.

The Andhra Pradesh Electricity Regulatory Commission in its order  said the marginal increase has been effected which is less than the inflation for the financial year 2016-17. It stated that the real value of charges being collected is slightly lesser than the actual value of charges at 2016-17 levels.

The State Government had agreed to pay a subsidy of Rs. 3700 crore towards eligible categories in the agriculture, those entitled to free or concessional supply of power as against Rs. 3,300 crore granted towards last year's subsidy.

As per the agreement with the Union Power Ministry following AP joining the Ujjwal Discom Assurance Yojana (UDAY) scheme in June 2016, the State had agreed for a tariff hike of 5 per cent last year and 3.6 per cent in 2017-18.

Of the 1.59 crore consumers, 1.44 crore consumers (90.5 per cent) of total consumers are unaffected and their energy charges unchanged.

And 15.47 lakh consumers who come under seven hours of free power supply in the agriculture have also been left untouched.

While the licensees showed an overall deficit of Rs. 8,065 crore which they tried to cover with a tariff hike of Rs. 1,111 crore and subsidy component of Rs. 6,937 crore, the State Budget allotted Rs. 3,300 crore for subsidy. The Commission's request to provide a subsidy of Rs. 3,700 crore was accepted by the State Government.

Source- The Hindu


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