Power Utilities Estimate Revenue Gap for 2024–25

Hyderabad: Power distribution companies (discoms) have estimated a gap of Rs 13,022 crore for the current financial year of 2024-25, with Rs 44,835 crore revenue as against the aggregate revenue requirement (ARR) of Rs 57,857 crore.

The discoms have to shell out Rs 42,702 crore for power purchase, transmission costs of Rs 5,271 crore and distribution costs of Rs 9,377 crore. The discoms based its figures on estimated sales of 75,895 million units and a power purchase quantum of 85,284 million units to meet the sales and other costs.

Based on its ARR, the power utilities have made several proposals for a tariff hike, which include increase of fixed charges for domestic connections consuming more than 300 units per month, increase of fixed charges for LT-industrial (low tension) and LT-commercial consumers, marginal increase of fixed charges for HT (high tension) consumers, rationalisation of energy charges for HT 33 kV and 132 kV consumers to match energy charges for 11 kV consumers and increase of energy charges for HT-airports and HT-railway traction category.

The discoms have not proposed any hike in energy charges for any LT consumer.

Though the discoms have not given clarification on how much burden the consumers would face, some estimates have put the proposed tariff hike of Rs 1,200 crore.

The government has to cover the remaining tariff gap of Rs 13,022 crore as it is expected to be subsidised by the government for various means.