Power News We love to talk!

MAR 28 2018

Power tariff retained for all but 3 categories

  • Economic Times, ET Bureau / Hyderabad
  • Created: Wed 28th MAR 2018


The retail power supply tariff for 2018-19 announced by the Telangana State Electricity Regulatory Commission (TSERC) here on Tuesday has spared, as expected in tune with the proposals submitted by the two distribution companies (discoms), most of the consumer categories from any increase in the existing tariff.

It has approved new tariff for HT-IV(A) lift irrigation, HT-VIII (RESCO) at 11 Kv voltage level and poultry farmers under LT and HT categories. The regulatory body, however, amply indicated that the net revenue deficit of the discoms would, in all probability, be passed on to the consumers in future. The tariff order issued on Tuesday stated that the gap between the revenue deficit of the discoms and the provision made by the State government in the budget estimates for 2018-19 for reimbursement towards agriculture and allied subsidy “will be examined at appropriate time”.

Against the Rs. 9,771 crore revenue deficit projected by the discoms in their aggregate revenue requirement (ARR) proposals for 2018-19, the regulatory commission has determined the deficit at Rs. 5,940 crore, based on the “prudence check of the filings by discoms”. In addition, the TSERC has worked out an additional subsidy requirement of Rs. 32.71 crore for extending the current tariff concession of Rs. 2 per unit to poultry farms. However, the letter is silent on the release of subsidy commitment to poultry farms.

“Against the subsidy requirement of Rs. 5,940 crore computed by the commission for 2018-19, the State government has informed that an amount of Rs. 4,984 crore has been provisioned in the budget towards agriculture and allied subsidy,” the TSERC order said. The budgetary provision for subsidy would leave a revenue shortage of Rs. 956 crore to the discoms even after the regulatory body has computed the revenue deficit at Rs. 3,831 crore less than what the utilities have projected.

Against the existing tariff of Rs. 6.40 per unit for lift irrigation schemes, the commission has determined two-part tariff. The new tariff comprises Rs. 165 per Kva per month as fixed/demand charges and Rs. 5.80 per unit energy charges. The discoms have proposed Rs. 390 per Kva per month as fixed charges and Rs. 5.80 per unit as energy charges for lift irrigation category.

For HT-VIII (RESCO) category, the commission has approved energy charges of Rs. 4.52 per unit by increasing it considerably from the existing Rs. 1 per unit. Similarly, the commission has increased the energy charges for poultry farms under LT category to Rs. 6 per unit from the existing Rs. 4 per unit and to Rs. 6.65 (11Kv) and Rs. 6.15 (33Kv) per unit from Rs. 4.65 and Rs. 4.15, respectively. It, however, retained the fixed charge of Rs. 50 per Kva per month for LT and Rs. 390 per Kva per month for HT.

The TSERC has also approved revised cross subsidy surcharge and approved additional surcharge of Rs. 0.52 per unit for 2018-19. The new tariff will come into effect on April 1.


Telangana Distribution Companies Tariff Energy Electricity Regulatory Commission Budget Power Electricity Consumer Telangana State Electricity Regulatory Commission

Related News