Telangana Discoms propose to hike tariff by 50 paise/unit

Though no one will be spared of the proposed tariff hike, the Discoms will still have a revenue gap of Rs 4,097 crore, which is proposed to be bridged through internal efficiency measures.

Published: 28th December 2021 07:37 AM  |   Last Updated: 28th December 2021 07:37 AM   |  A+A-

Power, electricity

For representational purpose

Express News Service

HYDERABAD: All the 1.1 crore domestic power consumers in Telangana, irrespective of their slabs, have to pay 50 paise extra per unit from April 2022, if the TS Electricity Regulatory Commission (TSERC) approves the tariff proposals submitted by two Discoms on Monday.

The chairmen and Managing Directors of Discoms, G Raghuma Reddy and A Gopal Rao submitted tariff proposals for 2022-23. They proposed to hike LT domestic tariff by 50 paise per unit and all other LT categories by Rs 1 per unit, which is expected to generate an additional revenue of Rs 2,110 crore.

The minimum power tariff per unit was Rs 1.45 and it is proposed to be increased to Rs 1.95. “The minimum power tariff of 1.45 per unit has been revised after a gap of 20 years. We have not increased power tariff in the last five years,” TSSPDCL chairman and MD G Raghuma Reddy informed the media.

For HT consumers, the Discoms proposed to increase tariff by Rs 1 per unit. The expected additional revenue, if the proposal is approved, is Rs 4,721 crore. In all, the Discoms proposed to generate an additional revenue of Rs 6,831 crore in 2022-23 by way of increasing the tariff for all consumers under LT and HT categories.

Though no one will be spared of the proposed tariff hike, the Discoms will still have a revenue gap of Rs 4,097 crore, which is proposed to be bridged through internal efficiency measures and also with support from the government.

Centre’s policies led to rise in costs: Telangana Discoms

The Discoms, while submitting tariff proposals, informed the ERC that the policies of the Central government, like increase in clean energy cess from Rs 50 per tonne to Rs 400 per tonne on coal, increase in coal cost by around Rs 800 per tonne over the years, increase in railway freight by 40 per cent in the last four years and increase in petrol and diesel prices, led to the increase in power generation costs.

The Discoms also informed the ERC about the increase in employee cost due to two wage revisions and an increase in finance cost due to strengthening the transmission and distribution network by investing Rs 34,087 crore to supply reliable power in the state to all categories of consumers, including free supply to agriculture.

The Discoms informed ERC that the benefits extended by the state, including free 24x7 power supply to 25.78 lakh farmers, free power up to 101 units per month to SC and ST domestic consumers, free power up to 250 units per month to the hair cutting saloons and laundries, and concession of Rs 2 per unit for powerlooms, poultry farmers and spinning mills would continue.  


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