HYDERABAD: In a major embarrassment to power distribution companies, Telangana State Electricity Regulatory Commission (TSERC) has decided to determine the power tariff for the year 2017-18 on the Suo Motu basis.
The reason is that the discoms, which had filed the Aggregate Revenue Requirement (ARR) in November itself, have failed to submit the tariff proposals for the next financial year till now.
With the inordinate delay on the part of discoms in filing tariff proposals, the TSERC on Saturday communicated to the Discoms that the ERC will determine the tariff on its own.
Sources in discoms told Express that the delay was due to the busy schedule of Chief Minister K Chandrasekhar Rao. “We are ready to file the tariff proposals, once the chief minister vets them. The delay is on the part of the chief minister,” an official disclosed while pleading anonymity.
“Initially, the delay was due to the state joining Centr’s UDAY scheme. But now the chief minister has to look into the proposals and finalise the state government’s subsidy portion. Once, the subsidy is finalised, then we will decide on the tariff and file the proposals before the ERC,” the official said.
However, with the ERC administering shock to the discoms, the officials are planning to meet the chief minister on Sunday or Monday. “We will definitely file the tariff proposals on Monday or Tuesday, after taking CM’s permission,” an official said. In its communication to discoms, the TSERC said the discoms were supposed to file ARRs and retail supply tariff proposals for 2017-18 by November 30.
“The TS discoms have filed the ARRs on November 30 and requested the ERC from time to time for extension of time for filing of tariff proposals citing certain reasons. Considering the requests of the discoms, the ERC granted an extension for the filing of tariff proposals thrice,” the ERC secretary said.
Though sufficient time was given to the discoms, they failed to file tariff proposals. Instead, they have now sought further time for filing of tariff proposals till February 28. Hence, the commission expressed its displeasure in not filing the tariff proposals,” the communique stated.
“File tariff proposals on or before February 23 and in default, the ERC will act Suo Motu for determination of the tariff for 2017-18 based on information available to the commission in the form of ARR/FPTs for 2015-16 and 2016-17 and ARR for 2017-18. The commission will reckon the information filed by licensees after the commencement of the Suo Motu proceedings fo the determination of the retail supply tariff for 2017-18,” the ERC told discoms.