Telangana State Electricity Regulatory Commission (TSERC) has blamed it on the two power distribution companies (discoms) for the inordinate delay in determination of retail supply tariff to all categories of consumers including Hyderabad Metro Water Supply and Sewerage Board (HMWSSB or Water Board) since FY2019-20.
The observation was made by the Commission in its recent order on the two discoms’ plea to review/withdraw the revised tariff made applicable to the Water Board, through order dated July 18, 2020 of the Commission following a letter written by the Government to it on June 26, 2020, with retrospective effect from FY2018-19 till a final view is taken by it on tariff for FY2019-20, FY2020-21 and true up for FY2018-19.
In its February 25 order providing relief to the Water Board, the ERC has turned down the pleas of the two discoms for revising the tariff in HT-V(B) category, as given to Hyderabad Metro Rail, extended to the Water Board by the Government and for advising the Government to reimburse the revenue loss incurred by them on account of implementing the revised tariff.
“On one hand the applicants (discoms) do not choose to file the necessary petitions for determination for retail supply tariff so that tariff for the other public utility service (Water Board) is crystallised, on the other they are seeking rollback of the tariff extended without there being any statement on the withdrawal of the decision taken by the Government in August 2018,” the Commission said in its order on the first plea.
The discoms argued that if the government wishes to grant any subsidy to any consumer or class of consumers in the tariff determined by the ERC, it has to pay the required amount in advance to compensate the revenue loss expected to be suffered by them (discoms) with the subsidy.
Further, they have pointed out that the determined tariff could not be amended except in case of changes through fuel surcharge adjustment formula. In case the Government plans any subsidy it shall be done with provision of explicit subvention.
However, the Water Board has requested for continuation of the revised tariff perpetually and they were pursuing with the Government for provision of necessary subvention.
