TS discoms miss deadline one more year in succession in filing ARRs

TSERC Chairman T. Sriranga Rao will decide on whether to give more time for filing ARRs after he returns to Hyderabad.

TSERC Chairman T. Sriranga Rao will decide on whether to give more time for filing ARRs after he returns to Hyderabad.   | Photo Credit: File photo


Chief Minister’s decision on subsidy provisioning, government dues awaited

The two power distribution companies (Discoms) of Telangana have sought more time from the Telangana State Electricity Regulatory Commission (TSERC) for filing their annual revenue requirement (ARRs) for the financial years 2019-20 and 2020-21, resulting in the delay of the process for finalising the retail supply tariff for one more year in succession.

Sources in the Energy Department stated that the managements of the two power utilities were yet to get the Chief Minister’s response on their request from higher provision of subsidy and also on the settlement of dues from various government departments now standing at a whopping ₹10,000 crore.

“Increase in input costs such as fuel rates, including the clean energy cess, and employees wage bill after the revision of their salaries are in excess of the outstanding dues from government departments. Besides, subsidy proportionate to the energy demand from agriculture sector is also needed to help the Discoms plug their increasing losses,” a senior official told The Hindu.

Provisioning of subsidy and settlement of outstanding dues of government departments in lieu of energy consumed is necessary for filing the ARRs and finalising the tariff. The two aspects could be settled only at the Chief Minister’s level, particularly in the wake of strain on the government revenues following the prevailing economic slow down, the official explained on the condition of anonymity. Asked about the tariff revision (increase), the senior official said the chances were remote ahead of the elections to urban local bodies.

The ARRs for 2019-20 would undergo changes in the wake of unforeseen increase in the hydel generation during the year, about 22% of the total energy generated by TS-Genco at its generation facilities till November-end. Against 18,308 million units (MU) of energy generated by Genco till November 29, about 3,938 MU is hydel contribution, the highest in the recent years. It would reduce the purchase bill of the Discoms to some extent.

Officials of the TSERC waited for filing of ARRs by Southern Power Distribution Company of Telangana Ltd (TSSPDCL) and Northern Power Distribution Company of Telangana Ltd (TSNPDCL) even after the office hours on Saturday (November 30), the actual deadline for Discoms to file their ARRs every year. However, they received the request for seeking more time for filing the ARRs late in the evening.

Sources in the regulatory body admitted that the filing of ARRs would happen later and a decision on the request for more time could be taken only by Chairman T. Sriranga Rao, who is stated to be on a visit to Australia, after his expected return to the headquarters on December 2.

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Printable version | Dec 7, 2019 9:57:48 AM |

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