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Home News Power Sector News Telangana hikes power charges from April 1

Telangana hikes power charges from April 1

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TelanganaElectricity charges for industries, commercial and other non-domestic categories of consumers have been increased by 30-40 paise in Telangana state along with a marginal increase in tariff on higher domestic slabs, effective from April 1, 2015.

The Telangana State Electricity Regulatory Commission(TSERC) on Friday issued the tariff order for 2015-16 with a moderate 4.42 per cent increase in overall tariff, facilitating an additional revenue of Rs 816 crore for the power utilities. Tariff has been increased for street lighting, water supply schemes among other categories. The railway traction has also been increased to Rs 6.80 per unit from Rs 6.36.

However, all domestic households consuming up to 200 units a month have been excluded from the tariff hike. Cottage industries and agriculture sector also has been kept outside the tariff increase while the existing charges on poultry industry had been slashed by Rs 2 per unit in a bid to protect the poultry industry. About 4,267 poultry farmers are expected to benefit from the government decision to give a special subsidy of Rs 30 crore towards tariff reduction.

Speaking to media, TSERC chairman Mohammed Ismail Ali Khan said the commission was able to reduce the requirement of around Rs 400 crore in additional revenue by not agreeing for a 2 per cent increase in fuel costs proposed by the discoms.

The commission has approved a total revenue requirement of Rs 23,416 crore for 2015-16, out of which Rs 19,159 crore would come from the revised tariff and Rs 4,257 crore as subsidy from the government.

Within the government subsidy, about Rs 2,366 crore would be spent on the agriculture as farm sector consumption has been determined at 10,650 million units, or around 25 per cent of the total supply, while the remaining subsidy goes for the domestic consumers, according to the officials.

The discoms will supply a total of 52,000 million units of power during the year 2015-16, a growth of 8 per cent in demand approved by the commission. The state is expected to have 10.2 million consumers in 2015-16.

Responding to a question on the AP government's refusal to share power from certain new power projects, including Hinduja and Krishnapatnam, the commission chairman said the power utilities would make alternative power purchase arrangements if they fail to get supply from these generating stations.

Source- Business standard


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