HYDERABAD: The revenue gap for 2022-23 for both the Discoms is Rs 10,928 crore, after the government’s projected subsidy of around Rs 5,652 crore, according to the aggregate revenue requirement (ARRs) filed with the TS Electricity Regulatory Commission ((TSERC) on Tuesday.
Both the Discoms are now looking at the State government as to what extent it would fill the yawning gap and it remains to be seen whether or not the government will allow the Discoms to hike power tariff. As the new tariff, if proposed, is applicable till March 31, 2023, which is an election year and therefore it is perceived that the tariff hike may not be very burdensome, if at all imposed.
While directing the Discoms to immediately file tariff proposals, the ERC said that there is a need to enhance the retail supply tariff in order to bridge the revenue gap and strengthen the Discoms’ financial position.
“The Discoms filed ARRs today. We have directed the Discoms to also file tariff proposals. Only then we will proceed further,” ERC chairman T Sriranga Rao told reporters. According to sources in the power utility, there might be around 10% hike in tariff. The Discoms increased the power tariff five years ago but later they stopped filing tariff proposals and ARRs in time. This year, however, the Discoms filed the ARRs within the stipulated time.
On Tuesday, the Discoms also filed ARRs for 2021-22, which will be completed in the next four months. However, the ERC said that the ARRs of two years would be clubbed for the public hearing. It is not clear whether or not the Discoms would file the true-up charges for 2021-22. If they do, the burden on the consumers would be more. The Discoms’ revenue gap for 2021-22 is Rs 10,624 crore and if the revenue gap of 2022-23 is also added, the total gap would be Rs 21,552 crore. “ARR filings are not accompanied by tariff proposals as per the provisions of the Regulation,” the ERC chairman said.
“There was no increase in electricity tariff in the State for the past couple of years even though there is a steep increase in the input costs such as clean energy cess, freight charges of thermal power stations, which is the main source to meet the electricity demand of the State. Though the State government has been releasing timely tariff subsidy and infusion of considerable equity to Discoms, they are coming under stress. In spite of all the problems, the Discoms are supplying 24x7 reliable and quality power to all categories of consumers, including agriculture sector,” he added.
Besides the two Discoms, the Co-operative Electric Supply Society (CESS) also filed the ARRs on Tuesday. The Revenue gap for TSSPDCL is Rs 7,008 crore for 2021-22 and Rs 7,731 crore for 2022-23, which totals to Rs 14,739 crore. The revenue gap for NPDCL is Rs 3,616 crore for 2021-22 and Rs 3,197 crore for 2022-23 (total of Rs 6,813 crore).
Last hike five years ago
The Discoms increased the power tariff five years ago but later they stopped filing tariff proposals and ARRs in time.
ERC sees need to bridge gap
The ERC said that there is a need to enhance the retail supply tariff in order to bridge the revenue gap and strengthen the Discoms’ financial position.