Power tariff hike only on industry unfair: Businessmen

Hyderabad: Industrial, commercial sector and HT consumers, along with representatives of Federation of TS and AP Chambers of Commerce and Industry, said that any hike in power tariff for the industrial and commercial sector would be unfair if domestic consumers are spared. They wondered how long should industrial and commercial sectors continue to bear the burden of cross subsidy for the domestic sector.

When 68 per cent of the power is consumed by domestic and agriculture sector, then these sectors should pay for it, was the view of the industry and commercial sectors. “Industry and commercial sector is forced to pay more towards power tariff,” FTAPCCI president V. Anil Reddy said, at the public hearing conducted on Thursday by the TS Electricity Regulatory Commission on the proposed tariff hike sought by TS Discoms. The industrial and HT consumers pointed out inconsistencies in calculations towards power purchase cost which constitutes over 75 per cent of the total cost of the Discoms.

Mr Reddy highlighted the need for tariff rationalisation for MSMEs. “Initiatives of state and Central governments, including ‘Make in India’ would not fructify if rationalisation is not done. Separate category of tariff slabs for MSMEs, Steel and Ferroalloys should be created,” he said. Bhushan Rastogi of the Mercados Energy Markets India representing the  FTAPCCI and Telangana Textiles and Spinning Mills Association pointed out that state power generating companies are subjected to lenient operating norms when actually Central ERC benchmarks ought to be applied.

Mr Rastogi and others pointed out that power supply for agriculture consumers was increased from 6 hours to 9 hours, but no corresponding increase in quantum of sales has been projected by the Discoms. TS government representative said that the state has allocated Rs 4,470.10 crore subsidy for agriculture sector power supply. This figure was opposed by the industry representatives who provided calculations to show that the subsidy requirement in 2016-17 was Rs 7,393.97 crore.