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DEC 18 2017

Discoms peg ARR for 2018-19 at Rs. 35,774 cr.

  • Economic Times, ET Bureau / Hyderabad
  • Created: Mon 18th DEC 2017


The two power distribution companies in Telangana have estimated their aggregate revenue requirement (ARR) for 2018-19 at Rs. 35,774 crore.

They, however, have sought time from the Electricity Regulatory Commission for filing retail supply tariff for the next financial year.

Higher demand

In the petitions (reports) filed before the ERC on Friday, the two utilities put the power purchase costs, including pension liabilities, for 2018-19 at Rs. 27,903 crore against Rs. 24,421 crore proposed for the current (2017-18) year. The discoms have worked out the average cost of supply for the next year at Rs. 6.42 per unit (Kwh).

The distribution companies, according to officials, have attributed the prospective increase in demand for power to the functioning of Metro Rail, round-the-clock power supply to agriculture sector and new industries.

Increase in ARR

Similarly, they have attributed the increase in ARR by Rs. 7,361 crore when compared to the approved ARR of Rs. 28,413 crore for 2017-18 to increase in the power purchase cost due to increase in fuel and transportation (variable costs) costs by Rs. 1,210 crore.

The Telangana Discoms have estimated, in their submission to the ERC, the additional burden for 24×7 power supply to agriculture sector at Rs. 2,550 crore with the projection of additional demand (requirement) of 5,088 million units (MU) from the agriculture sector.

Increase in power purchase cost for meeting additional demand from other categories has been estimated at Rs. 2,404 crore.

Network charges

Besides, the power utilities have estimated the increase in network charges for the additional power procurement at Rs. 1,123 crore.

On the whole, the Discoms have estimated the energy requirement of the State at 64,291 MU and put the availability at 67,573 MU with a surplus of 3,282 Million Units.

Solar power

They have also submitted to the ERC that the solar power projects from 2015 competitive bidding and earlier power purchase agreements were expected to be fully operational by the end of 2017-18. The Discoms will file revenue projections and true-up charges separately.


Telangana Distribution Companies Tariff Energy Electricity Regulatory Commission Power Distribution Power Electricity solar power Solar

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