Minister Gottipati Ravi Kumar defends Rs 6k crore power charges

Speaking to mediapersons at the Secretariat on Saturday, Ravi said the Discoms’ proposals for FPPCA two years ago to the APERC was not accepted.
Minister for Energy Gottipati Ravi Kumar
Minister for Energy Gottipati Ravi Kumar
Updated on
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VIJAYAWADA: A day after the Andhra Pradesh Electricity Regulatory Commission (APERC) allowed Discoms (power distribution companies) to recover Fuel and Power Purchase Cost Adjustment (FPPCA) of Rs 6,072.86 crore from consumers, Minister for Energy Gottipati Ravi Kumar squarely blamed the previous government, led by YSRC chief YS Jagan Mohan Reddy, for the inevitable increase in power tariff.

Speaking to mediapersons at the Secretariat on Saturday, Ravi said the Discoms’ proposals for FPPCA two years ago to the APERC was not accepted.

Stating that the TDP-led NDA government is “forced to pay for the sins of the previous administration”, the Minister said, “Even when the proposal was made in March 2024, no decision was taken in view of the elections that were just weeks away. However, people should take note of the fact that before demitting office, Jagan requested APERC to accept proposals of the Discoms. However, the decision was taken in October.” Further, he accused the previous YSRC government of taking ignorant and illogical decisions in the five years, which have now burdened the people of the State with an increased power tariff.

He charged Jagan and former energy minister Peddireddy Ramachandra Reddy with taking kickbacks and resorting to irregularities in power and coal purchase.

Jagan rendered APGENCO powerless, says energy minister

Explaining the reasons for FPPCA, he said, soon after coming to power, Jagan cancelled power purchase agreements, rendered APGENCO (Andhra Pradesh Power Generation Corporation) powerless, favoured private parties in the name of public needs, and purchased power at higher rates in the open market, thus burdening DISCOMs.

“Power tariff was revised nine times under YSRC regime and the total burden on the people of the State for the year 2023-24 was Rs 11,826.42 crore,” he pointed out. After a comprehensive public consultation process and public hearing on October 18, APERC, on Friday, issued an order allowing the recovery FPCCA charges from consumers for financial year 2022-23, where the Commission carefully considered all public objections, views, and suggestions.

The Commission approved the FPPCA recovery of Rs 6,072.86 crore from the consumers for FY 2022-23 as against Rs 8,114 crore proposed by DISCOMs. The Commission did not consider the DISCOMs’ request to allow carrying costs (Interest). It directed the power distribution companies to recover FPPCA charges in 15 months to avoid hardship and tariff shock to the consumers.

As far as agriculture consumption under the free category and other subsidised or partly subsidised consumers are considered, the DISCOMs were directed to recover FPPCA to the tune of Rs 1,400 crore out of the Rs 6,072 crore.

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