Telangana discoms propose tariff hike to recover Rs 2,000 crore in 2017-18
Hyderabad: The two power distribution companies are proposing a tariff hike to recover Rs 2,000 crore from consumers in 2017-18. They will submit the proposal to the TS Electricity Regulatory Commission by the end of November.
Discom officials said it was premature to say that the revenue gap would be over Rs 2,000 crore as many factors are taken into consideration before filing annual revenue requirement with the ERC.
Experts say the increase in the power tariff hike next year is due to the nine-hours of free power a day being given to the agriculture sector, one lakh new agricultural connections being released at an estimated cost of Rs 700 crore, and over 2,000 MW being purchased from private producers.
“Power consumption is expected to go up as agricultural operations will be in full swing due to increased groundwater levels. The anticipated revenue from the industrial sector is likely to be less as several major industries are going for open access power,” an expert said. The discoms will also file ‘true up’ claims — expenditure incurred by discoms over what was permitted to them, he pointed out.
Telangana discoms make case for big hike in power tarrif from April
All these factors point to a higher tariff increase unless the state government increases its subsidy share, the expert said.
The government paid the discoms a subsidy of less than Rs 5,000 crore in 2016-17, though the discoms spent much more to supply free power to the agriculture sector and subsidised power to domestic consumers.
Though discoms will find a major relief in Ujwal Discoms Assurance Yojana, a Central government scheme under which the state government will take over 70 per cent of the loans of discoms, there is no progress in this scheme after the state government signed an agreement with the Centre to join the scheme.
