Huge relief: Discoms have no proposal to hike power tariff

HYDERABAD: Ahead of the Assembly elections next year, the electricity distribution companies, popularly known as Discoms, have proposed no tariff hike for 2023- 24. While this comes as a relief for consumers across categories, power bills may fluctuate on a monthly basis from April 2023 based on the cost of fuels. The Discoms have informed Telangana State Electricity Regulatory Commission (ERC) that their revenue gap of Rs 10,535 crore would be borne by the State government for 2023-24. The two Discoms — Southern Power Distribution Company of Telangana Limited (TSSPDCL) and Northern Power Distribution Company of Telangana Limited (TSNPDCL) — submitted their aggregate revenue requirement (ARRs) for 2023-24 to the ERC on Wednesday. Even though the Discoms proposed no tariff hike, if the ERC feels that there is a need for an upward revision in power tariffs, it may take a decision after conducting the public hearing.

However, as requested by the Discoms earlier, the ERC recently issued draft proposals allowing Discoms to increase the tariff up to 30 paise per unit for all categories of consumers from April 2023 towards fuel surcharge. Thus, consumers may get inflated/deflated bills from April. “If the fuel costs are reduced, the Discoms will reduce the power tariff on a monthly basis. The balance amount will be adjusted in the future bills by the Discoms,” ERC chairman T Sriranga Rao said. The Discoms, while submitting the ARRs, stated that Telangana met a peak demand of 14,160 MW on March 29, 2022, exceeding the previous year’s peak (13,688 MW). Per capita consumption for 2021-22 is 2,216 units against the all-India average of 1,255 units. The TS Genco plant load factor for the year 2021-22 was 73.87 per cent, the highest in the country as against the all- India average of 56.5 per cent.

The Discoms expect the industrial and commercial sales to increase by 13.75 per cent and 15.07 per cent, respectively, in 2023-24 in wake of the rise in investments in these sectors in Telangana. The Disocms also informed ERC that the 24X7 free agriculture power supply to 27.62 lakh farmers, free power up to 101 units per month to Scheduled Caste (SC) and Scheduled Tribe (ST) domestic consumers, free power up to 250 units per month to saloons run by Nayee Brahmins and laundries run by washermen and concession of Rs 2 per unit to powerlooms, poultry farms and spinning mills will be continued.