The two power distribution companies (discoms) of Telangana are bracing up to meet the ever increasing energy demand in the State which is expected to touch 13,000 MW this rabi season. This, in spite of rising losses attributed to widening gap between the average cost of supply and aggregate revenue realisation and piling up of dues from government departments.
Budgetary allocation for meeting energy subsidy in lieu of 24×7 free power supply to agriculture sector and some other sections of consumers is, however, falling short of the actual consumption by the subsidised sections. “Non-revision of retail power supply tariff for the last several years has also been adding up to the losses in the form of sustained gap of over ₹1 per unit in the average cost of supply and revenue,” a senior executive of the power utilities said when asked about the financial health of Discoms.
Peak power demand on the system was recorded at 11,703 MW on August 30 this year, the highest ever clocked in the State, and the energy consumption on that day was about 242 million units. “The average intra-day demand is higher in the range of about 2,000 MW for the last few days compared to the same period last year,” the official said explaining the increasing burden on the power utilities.
Rising losses
Power demand has shot up sharply in the State post the introduction of round-the-clock free power to agriculture sector from January 1, 2018. “However, the measure has been adding to the losses of discoms due to shortfall in the subsidy component. The government has allocated ₹8,200 crore as subsidy this year (2019-20) but in all likelihood it would not match the actual consumption by the subsidised sections necessitating additional allocation by the government or free hand to discoms to increase the tariff to plug the loss,” the senior official said.
With increase in demand both from agriculture sector and lift irrigation projects, the discoms are expecting some positive gestures from the government ahead of filing the annual revenue returns and tariff order for 2020-21. The power utilities are hopeful that they would have some relief in the energy purchase bill to meet the peak demand this season as two units of 270 MW each of the 1,080 MW Bhadradri Thermal Power Station are expected to go for commercial operation by January-end and the remaining two units by June-end next.
