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Home News Power Sector News AP Discoms plan hefty power tariff hike for 2013-14

AP Discoms plan hefty power tariff hike for 2013-14

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APWith the AP government expressing its inability to increase the subsidy for the debt-ridden electricity distribution companies, the domestic and industrial consumers in the state are all set to bear the brunt of the power tariff hike that the discoms have planned for the financial year 2013-14. With chief minister N Kiran Kumar Reddy having cleared the hike proposal put forth by the discoms, the same is slated to be presented to the AP Energy Regulatory Commission (APERC) on 31-12-2012 in the form of Annual Revenue Requirement (ARR) for clearance. The burden on the consumer would increase by about 15-20% on the existing tariff.

Of the total revenue requirement of Rs 18,200 crore, the state has agreed to provide a subsidy component of Rs 6,000 crore but refused to increase it as sought by the discoms. With the state refusing to bail out the discoms, the revenue gap that the four distribution companies are facing stands at Rs 12,200 crore. The stubborn stand taken by the finance department has made the discoms jittery, as they were hesitant to go for a massive tariff hike for the second consecutive year.

"Now we have to impose additional burden on the power consumers. It may vary from 15 to 20% from that of last year's hike," said the sources in the discoms. The tariff hike will be 0.50 paise to 0.80 paise on domestic consumers and Re 1 to Rs 1.50 on commercial and industrial consumers.

The Fuel Surcharge Adjustment (FSA), which till now was charged quarterly, will henceforth be made part of the tariff hike so that the discoms need not go to the ERC every quarter for permission to collect FSA. According to sources, the discoms are more worried over the collection of FSA dues which were stayed by the AP High Court.

Even the permitted FSA for the first quarter of 2012-13 has not been collected fully due to the court order. "As a result, we will have to adjust this amount in the next financial year along with the tariff hike and this would burden the consumers heavily," said the sources.

Source- TOI


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