HYDERABAD: The State government is purchasing power at an exorbitant price; the average cost of power purchased in May 2022 was Rs 6.76 per unit. It was even higher in April, 2022 at Rs 10.06 per unit, when there was an acute shortage of power in the country.
The distribution companies even purchased at a peak price of Rs 20 per unit sometimes this summer, in order to provide 24X7 power to all categories of consumers.
According to information available, it was the Central Electricity Regulatory Commission (CERC) that had kept a ceiling of Rs 20 per unit to safeguard the interests of consumers and to prevent exploitation by power generators. However, the ceiling price was very high, the State government contends.
Distribution companies depend on power exchanges for short term power requirements. When the peak price of power went up to Rs 20 per unit this summer, Telangana officials requested the Ministry of Power to reduce the ceiling tariff to Rs 12 per unit.
Accordingly, the CERC reduced the cost to Rs 12 per unit in April. Besides high costs at the exchanges, the State also faced a similar problem with NTPC plants. "The power prices being charged by NTPC plants are also increasing every year. Telangana has paid Rs 7.63 per unit to NTPC Kudgi, Rs 5.78 per unit to NTPC Vallur and Rs 5.23 per unit to NLC Tamil Nadu in 2021-22," official sources said.