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Home News Power Sector News AP Discoms propose 100% hike in power tariff

AP Discoms propose 100% hike in power tariff

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APERCAfter Tamil Nadu proposed a 300 per cent hike in power tariffs, the four AP discoms have followed suit and asked for 90-100 per cent increase in tariffs. The AP Discoms filed the Annual Revenue Require-ment (ARR) and Tariff proposals for the financial ye-ar 2012-13 before the State Electricity Regulatory Co-mmission on Monday. As per the proposal, one crore domestic consumers (consuming between 50 and 100 units) will be affected by the tariff hike and around 50 per cent of commercial consumers will be affected.

The new tariff will come into effect from April 1, 2012 if the APERC sanctions it. AP Transco aims to cover losses in excess of Rs 4,900 crore with the new tariff regime and the slabs between 100 units and 600 units of monthly consumption would be covered in the enhanced tariff. Sources said that the increased rates will essentially be passed on to consu-mers unless the state government offers to bear the additional burden by incre-asing the power subsidy.

The proposed tariff incre-ase comes after substantial increase in revenue deficits due to increase in power purchase cost, network cost as well as increased costs of coal and gas (fuel surcharge). If the APERC approves the ARR proposal filed by the discoms, this will be the first major tariff revision in nine years. While the Discoms have estimated the energy requi-rement for next year at 93,913 MU, the availability from approved stations may be around 81,464 MU.

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.

Source- Deccaan chronicle


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