Special Correspondent

Tariff for domestic sector unchanged; free power to agricultural pumpsets

HYDERABAD: Power tariff has been reduced for industries, commercial establishments, railways and diversified activities of industries for the fiscal 2008-09, effective from April 1, on the ground that these consumers heavily cross-subsidised categories of consumers like households and farmers.

The tariff rates for domestic sector, however, have been kept unchanged and free power allowed to the agriculture pumpsets in line with the government policy.

The AP Electricity Regulatory Commission here on Thursday issued tariff order for 2008-09 as against the revenue requirement proposals made by the four distribution companies, clearing retail sale of electricity by them to the tune of Rs. 14,533 crore for the year.


The tariff for high-tension category IV consumers like townships and residential colonies has also been rationalised but hiked to Rs. 4 per unit (now Rs. 3.50). Different groups of consumers falling under this category have been asked to avail themselves of the reduction at single point but subject to the terms and conditions in force now, it said. The ERC approved expenditure of Rs. 1 crore to each distribution company to experiment the use of the energy-saving compact fluorescent lamps (CFL) and another Rs. 1.32 crore each to electrify inaccessible tribal hamlets through solar photo-voltaic measures.

The order specified “green power” (non-conventional energy) as separate category which consumers could buy from the companies on voluntary basis paying a separate rate. It extended the Load Factor Incentive Scheme currently applicable to HT I category industries up to March 31, 2009.

New rates

The new rates for commercial establishments after the reduction are: Rs 3.85 for consumption up to 50 units and Rs 6.20 for consumption above 50 units. Different lower rates have been fixed for HT (industries) categories depending on their contracted load. The ferro-alloy units which enjoy Central subsidy, will pay only Rs 2.45 per unit. For lift irrigation schemes managed by the Government, the rates has been fixed at Rs 2.36 per unit and for railway traction Rs 4 per unit.