Even as the deadline set by the Andhra Pradesh Electricity Regulatory Commission (APERC) for submission of Aggregate Revenue Requirement (ARR)/tariff proposals by the power utilities expired on Saturday, uncertainty continues over the proposed power tariff revision and the extent to which consumers will be burdened.
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The power utilities, Eastern and Southern power distribution companies, are reportedly geared up to submit their proposals seeking the regulator’s permission to hike tariff by a minimum of 10 per cent on select categories. The ARR could not be submitted today as Chief Minister N. Chandrababu Naidu and Energy Secretary Ajay Jain were in Davos.
Hike in tariff, according to sources, had become inevitable as the utilities incurred additional expenditure on account of imported coal and power purchased at higher costs to ensure uninterrupted power supply.
Moreover, tariff revision could not be made last year as the model code of conduct was in force in view of the general elections and the utilities had been asked by the election authorities not to submit the proposals.
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The four distribution companies last year proposed a huge 28 per cent increase, amounting to Rs. 4,312 crore for domestic and LT commercial/industrial consumers last year. The proposed tariff increase for consumers under HT category was pegged at Rs. 5,027 crore, a significant rise of 23.9 per cent.
The quantum of hike could be similar, depending on the category of consumers, unless the government gives a clear picture on the subsidy it would give to the utilities for different types of consumers. Senior officials said the ARR would be taken to the notice of the Chief Minister on his return and he would be briefed about the necessity for tariff hike.
After obtaining the government’s nod and assurance on the quantum of the subsidy, the utilities are expected to submit their ARRs on the next working day -- January 27.
The ARR could not be submitted on Saturday as Chief Minister N. Chandrababu Naidu and Energy Secretary Ajay Jain are in Davos
The power utilities, Eastern and Southern power distribution companies, are reportedly geared up to submit their proposals seeking the regulator’s permission to hike tariff by a minimum of 10 per cent on select categories. The ARR could not be submitted today as Chief Minister N. Chandrababu Naidu and Energy Secretary Ajay Jain were in Davos.
Hike in tariff, according to sources, had become inevitable as the utilities incurred additional expenditure on account of imported coal and power purchased at higher costs to ensure uninterrupted power supply.
Moreover, tariff revision could not be made last year as the model code of conduct was in force in view of the general elections and the utilities had been asked by the election authorities not to submit the proposals.
The four distribution companies last year proposed a huge 28 per cent increase, amounting to Rs. 4,312 crore for domestic and LT commercial/industrial consumers last year. The proposed tariff increase for consumers under HT category was pegged at Rs. 5,027 crore, a significant rise of 23.9 per cent.
The quantum of hike could be similar, depending on the category of consumers, unless the government gives a clear picture on the subsidy it would give to the utilities for different types of consumers. Senior officials said the ARR would be taken to the notice of the Chief Minister on his return and he would be briefed about the necessity for tariff hike.
After obtaining the government’s nod and assurance on the quantum of the subsidy, the utilities are expected to submit their ARRs on the next working day -- January 27.