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APR 01 2016

97% power consumers in AP spared tariff hike, industries to pay 2-4% more

  • Economic Times, ET Bureau / Hyderabad
  • Created: Fri 01st APR 2016

Ninety-seven per cent of Andhra Pradesh’s 1.47 crore power consumers have been spared a tariff hike in the next financial year.

The Andhra Pradesh Electricity Regulatory Commission in its tariff order has spared the majority of consumers (96.6 per cent), domestic and other segments, while hiking the tariff by 2-4 per cent for industrial and commercial consumers.

C. Bhavani Prasad, Chairman, APERC, said, “There is no general increase in tariff for domestic consumers. Energy charges hike for non-domestic consumers is restricted to 2 per cent against 4 per cent proposed by licensees (discoms).”

Addressing the media, the Chairman said the tariff increase is limited to Rs. 216 crore as against Rs. 783 crore proposed by the licensees. As against a proposed increase of 2.75 per cent over last year, it has been limited to an increase of 0.81 per cent.

While exempting all categories of domestic consumers from a tariff hike, the regulator has also spared railway traction while also reducing the existing tariffs for sugarcane crushing units, lift irrigation schemes, aquaculture and animal husbandry (pisciculture /prawn culture, poultry units and dairy farms), poultry hatcheries, religious places and energy intensive units such as ferro alloys units.

The regulator has allowed an energy subsidy of Rs. 3,289 crore (only for agriculture) as against Rs. 4,364 crore sought by the licensees.

Factoring in the State’s move to join the Centre’s UDAY Scheme, the regulator refused to allow True Up charges (the additional amount incurred by them for meeting the power supply requirement) claimed by the discoms.

While the discoms had indicated an annual revenue requirement of Rs. 28,423 crore, the regulator slashed it by Rs. 1,773 crore to Rs. 26,649.98 crore.


Andhra Pradesh Tariff Hike Tariff Energy Electricity Regulatory Commission Andhra pradesh Electricity regulatory commission Power Electricity

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