Telangana hikes power tariff by 50 paise per unit

The Discoms proposed to collect an extra amount of Rs 6,831 crore for 2022-23 but the ERC gave permission for only Rs 5,596 crore collection.
Image used for representational purpose only.
Image used for representational purpose only.

HYDERABAD: Telangana’s 1.54 crore power consumers have to pay more from April 1 as the Telangana State Electricity Regulatory Commission (TSERC) has permitted power distribution companies (Discoms) to collect Rs 5,596 crore as additional revenue in 2022-23.

The power tariff is being increased after a gap of five years in the State. However, for domestic consumers in the category of 1-50 units, the power tariff is being revised after a gap of 19 years. The hike will be 14 per cent against the present tariff. The ERC approved the Discoms’ proposal to increase 50 paise per unit for domestic consumers and Rs 1 per unit for High Tension (HT) consumers.

For the first time, the ERC did not consider the transmission losses in aggregate revenue requirement (ARR). The Discoms proposed to collect an extra amount of Rs 6,831 crore for 2022-23 but the ERC gave permission for only Rs 5,596 crore collection.

The total ARR proposed by the Discoms in 2022-23 was Rs 53,000 crore, but the ERC allowed only Rs 48,707 crore. The State government has consented to provide a subsidy of Rs 8,221.17 crore, of which agriculture subsidy is Rs 6,850 crore and for BPL families it would be Rs 1,466 crore. Speaking to reporters here on Wednesday, ERC chairman

T Sriranga Rao said that the average cost of service increased from Rs 6.04 in 2018-19 to Rs 7.0 per kWh in 2022-23, which translates to an increase of 16 per cent.“The increase is due to the increase in the major cost components such as power purchase cost, distribution cost and transmission charges,” the ERC chairman said.

“The Commission has determined the retail supply tariffs for 2022-23 balancing the interest of all the stakeholders,” ERC chairman T Sriranga Rao added.He said that the ERC wanted the Discoms to fix meters to agriculture DTRs. The commission also directed the Discoms to strictly comply with the timelines for filing tariff proposals. The ERC decided to impose penalties if the Discoms fail to file tariff proposals by November 30 every year.

The ERC also wanted Discoms to bring the transmission losses down to less than 15 per cent. “In some localities in Hyderabad, the transmission losses are over 40 per cent. We suggested the Discoms to fix smart meters for all these consumers. We will not consider the transmission losses in ARRs in future too,” he said.

Rs 17.2 K cr arrears

ERC chairman T Sriranga Rao stated that the electricity bill arrears for Discoms by various government departments are Rs 12,598.73 crore and Rs 4,603.41 crore from other consumers. The total arrears are Rs 17,202.15 crore as on February 28, 2022.

Proposals & approvals

The ERC approved the proposal of the Discoms for green tariff. The Discoms proposed green tariff of Rs 2 per unit against which the ERC has approved for 66 paise per unit
Discoms proposed fixed charges of Rs 15 for LT domestic consumers. The ERC approved only Rs 10
ERC directed the Discoms to submit a time-bound action plan for replacement of existing meters with prepaid smart meters
ERC asks Discoms to create awareness in areas where technical and commercial loses are high

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