Annual Revenue Requirement proposed Time of Day tariff

Hyderabad: The Annual Revenue Requirement (ARR) of the discoms being prepared for the next two financial years, 2014-15 and 2015-16, totaling to Rs 3,500 crore, has proposed for the first time a ‘Time of Day tariff’ to be imposed on HT consumers.

As per sources, the proposal is for HT consumers to pay Rs 1 extra for each unit consumed during 6 pm to 9 pm of peak demand time.

The ‘Time of Day tariff’ is based on the recommendations of the task force report on energy sector in Telangana and it is expected to hit industries and other HT consumers in a big way, especially since they are already bearing the cross-subsidy for agricultural supply.

The TS government has made purchases to the tune of Rs 2.572 crore (4.889 MU of power) from June to November to meet the energy demand post bifurcation. The power-starved state bought power at Rs 5.7 per unit and the highest rates touched Rs 7.8 per unit.

The erstwhile AP Electricity Regulatory Commission had passed an order doing away with FSA from 2014 onwards and the pending dues will be put forth in the ARR being prepared currently.

The annual revenue deficit amounting to Rs 2400 crore has been proposed while the Rs 900 crore FSA is currently being bargained and discussed with the state government.