HYDERABAD: The Telangana power utilities are likely to take more time for finalising the tariff proposals for the next financial year.
The two distribution companies — Northern Power Distribution Company Limited and the Southern Power Distribution Company Limited — sought extension of time till January 18 to finalise the tariff proposals.
The utilities, while submitting their aggregate revenue requirement to the regulator TS Electricity Regulatory Commission last month sought a month’s time to arrive at the actual gap in the revenue requirement and power purchase costs to factor in various aspects including quantum of transmission and distribution costs as well as employee costs. With the one-month deadline expiring by December 31, they sought more time to finalise their reports and the TSERC was said to have positively reacted to the request.
Senior officials pointed out that the tariff proposals including hikes for some sections if any could be arrived at only after the Government announces its quantum of assistance in the form of subsidy for the year. A formal meeting between the heads of power utilities and the Government had not been held so far as the utilities had not arrived at a final picture of likely revenue deficit for the next year.
“A formal meeting with Chief Minister K. Chandrasekhar Rao and senior officials concerned could not take place in view of the ongoing winter session of the legislature. The Government is expected to weigh the requirements put forth by the utilities before taking a final call on the amount of subsidy that will be extended for the year,” a senior official told The Hindu . The Government, according to senior officials, is likely to review the situation after the conclusion of the Assembly session in second week of this month before announcing its decision.
The utilities are also waiting for the submission of report by the committee constituted by the Central Government to study rationalisation of tariff and ensure uniformity across the sectors, the official said. “This apart, there are some developments anticipated under the Centre’s UDAY scheme wherein the Government would take over the loans of the power utilities,” the official said.
