AP discoms propose tariff hike

Power users with consumption levels less than 500 units a month exempted

Barring domestic consumers with consumption levels less than 500 units a month, all other categories of power consumers in Andhra Pradesh were targeted for tariff hike in the Aggregate Revenue Requirement (ARR) proposals submitted on Wednesday by the two power distribution companies in the State to Andhra Pradesh Electricity Regulatory Commission (APERC).

The southern and eastern DISCOMS (distribution companies) together projected their ARR at ₹ 44,840.86 crore and total revenue at current tariffs, including non-tariff income, additional surcharge and cross subsidy surcharge, at ₹ 30,399 crore. While the southern DISCOM estimated the revenue deficit at current tariff at ₹ 10,301.18 crore, the eastern DISCOM pegged it at ₹ 4,140.06 crore.

The revenue impact due to proposed tariffs in southern DISCOM was estimated at ₹766.66 crore and ₹ 514.43 crore in eastern DISCOM. Both the DISCOMS have proposed an increase in tariff by 90 paise a unit for domestic consumption above 500 units. For consumption up to 500 units, the DISCOMS proposed to dispense with categorisation of consumers based on consumption during the previous financial year and instead levy charges based on current month in three groups — (A) less than 75 units, (B) more than 75 units and up to 225 units and (C) more than 225 units without any tariff increase up to 500 units.

Summer usage

The proposals effectively meant that the charges will go up for domestic consumers in summers if the usage exceeded 500 units and go down in rainy and winter seasons for consumption below 500 units. Among the highlights of the proposals are increase in tariff for railway traction from ₹ 3.75 a unit to ₹ 6.50 a unit. The charges for street lighting payable by gram panchayats, municipalities and municipal corporations was fixed at ₹ 7 a unit. Earlier, they ranged from ₹ 4 to 7.05 a unit. The hike for the local bodies for water supply schemes was ₹ 2.15 a unit.

Tariff was also enhanced for function halls, commercial establishments, religious places, corporate farmers, hatcheries and feed mixing plants and lift-irrigation schemes. A flat tariff of ₹ 200 per horse power (HP) per month was proposed in place of energy charges of ₹ 2.50 a unit for corporate farmers. Sixteen lakh farmers will benefit from nine-hour free power supply to agriculture.

The ARR filing was done by southern DISCOM Chairman and Managing Director H. Harinath Rao and his eastern DISCOM counterpart Nagalaxmi. The AP Transmission Corporation CMD and energy secretary N. Srikanth was also present. The APERC Chairman Justice C.V. Nagarjuna Reddy said a schedule for public hearing on the proposals will be announced soon.

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Printable version | Jun 5, 2020 9:03:09 AM |

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