VIJAYAWADA: Stating that the gap between revenue and expenditure has been widening over the years and discoms making market purchases at higher prices to ensure 24x7 power supply to consumers, Andhra Pradesh Electricity Regulatory Commission (APERC) chairman Justice CV Nagarjuna Reddy underlined the need for strengthening discoms financially and operationally, besides protecting the interests of consumers, which is an immediate need for the sustenance of power utilities
He was addressing the APCPDCL officials who felicitated him for receiving the prestigious The Great Son of India Award, which was presented by Governor Biswa Bhusan Harichandan.
Justice Nagarjuna Reddy said the objectives of APERC are to strengthen discoms, improve their performance operationally and financially and provision of better services to power consumers. Round-the-clock access to affordable electricity is a prerequisite for sustained economic growth of the State, he asserted.
The state will see rapid economic growth and urbanisation in the coming days, which will drive up the demand for electricity manifold, thus necessitating efficient, robust and consumer-centric power sector. However, the cash-strapped discoms are beset with acute financial crunch, which has to be tackled immediately to strengthen the power sector.
Explaining the gap between the revenue and expenditure, he said the cost of service was Rs 5.33 per unit in 2016-17, which has increased to Rs 6.87 in 2020-21.
Also, discoms are making market purchases even at higher prices in certain time blocks in order to maintain 24x7 uninterrupted quality power supply to consumers. The external and internal developments have caused a huge burden to discoms. In view of this, consumers are requested to support the strengthening of power utilities, he said.
He said the APERC is firm on promoting energy efficiency and thereby environmental protection to address the climate change and also fulfil country’s environmental commitments.
Energy Secretary B Sreedhar said the State government has fully supported discoms by providing huge subsidies/financial support to the tune of Rs 30,000 crore in the last two years. "No State has supported the power sector like AP. In spite of the maximum support from the government, the revenue and expenditure gap is increasing year on year which has to be addressed," he said.