Power tariff to be fixed after clarity on subsidy

 

However, the annual tariff order that determines the retail power tariff affecting individual domestic, commercial and industrial consumers, has not been decided.

The commission, while giving its order, specified that if it did not proceed to determine the SLDC Annual Fee and Operating Charges from April 1, 2014, the SLDC would not have a legal basis to levy tariff and a void would be created affecting the economic viability of SLDC to recover charges for performing its essential functions to maintain the critical electricity sector. 

 

The retail tariff order was not decided upon for want of a subsidy commitment from the government. “Until a subsidy from either the government of united Andhra or from the governments of the bifurcated states is made, retail tariff order cannot be decided upon,” said a senior official from APERC.

 

“The annual fee and operating charges of the SLDC decided based on APTransco filing for SLDC activity have been made for the energy infrastructure environment of undivided AP,” stated the order. 

 

APTransco proposed to recover Rs 91.78 crore capital cost expenditure over the next five years while the commission approved a total of Rs 44.38 crore.

The commission on the issue of the transmission tariff ordered that there would be no transmission charges for Non-Conventional Energy generators using wind, solar and mini hydel. “The users of the transmission system shall pay transmission charge and bear the transmission loss in kind,” APERC said.