The Andhra Pradesh Electricity Regulatory Commission (APERC) has decided to put on hold the proposed hike in power tariff for various categories till the election process is completed.
In an order issued on Saturday, the commission said the existing tariff for all the categories would continue from April 1 until further notice. The APERC’s order gives huge relief to consumers who were bracing up for a massive hike of power tariffs if the proposals submitted by the power utilities were any indication.
Power distribution companies proposed a huge 28 per cent increase, amounting to Rs. 4,312 crore for domestic and LT commercial/industrial consumers. The proposed tariff increase for consumers under the HT category was pegged at Rs. 5,027 crore, a significant rise of 23.9 per cent.
The APERC asked the government to confirm the level of subsidy it would provide to any consumer or class of consumers in the tariff determined by the commission. With the existing tariff order coming to a close on March 31, the commission sought the permission of the State Election Commission (SEC) as also the Election Commission of India (EC) to exempt it from the model code of conduct on the ground that the functioning of the power utilities would go haywire if fresh tariff was not implemented.
Responding to the APERC’s communication, the EC clarified that the issue of tariff order would require prior concurrence as the model code of conduct was in force. The SEC went a step ahead in directing the APERC against passing any tariff order as long as the model code was in force.
Meanwhile, the government also addressed a letter to the APERC claiming that it would not be in a position to communicate any specific view on the subsidy support because of the ongoing elections to the local bodies that would be followed by the general elections. The government said it would be in a position to communicate its considered view point on the issue to the APERC after the model code ceases.
The government had announced that the present level of subsidy would continue till it gives its response to the tariff proposals for the next financial year 2014-15. The APERC, accordingly, said the existing tariff would continue from April 1 until further orders.
