Hyderabad: The two power distribution companies (discoms) have submitted their Aggregate Revenue Requirement (ARR) to the TS Electricity Regulatory Commission without proposing tariff hikes for the coming year. As per the discoms’ estimates, they will be energy surplus by around 3,282 MU in 2018-19. They have asked the ERC for time to submit revenue projections and tariff proposals.
The discoms have estimated that the revenue requirement will be Rs 35,774 crore, Rs 11,353 crore more than this year. As per their estimates, Rs 27,903 crore will be required for the purchase of power, including pension liabilities. The average cost of supply (COS) from generation to the consumer is Rs 6.42 per unit. A total of 67,573 MU power will be available, and the requirement is estimated at 64,291 MU, which means that there will be 3,282 MU surplus power.
Round-the-clock power supply to agricultural consumers will begin on January 1, as per the government’s policy; and it will require about 5,000 MU which will cost Rs 2,500 crore. Discoms have told the ERC that solar power projects for which competitive bidding was conducted in 2015 and power purchase agreements signed are expected to be fully operational in 2018-19.
The state government has directed the discoms not to hike power tariffs in 2018-19. The discoms did not hike tariffs this year either, as per the directions of the government. Chief Minister K. Chandrasekhar Rao recently announced that the additional financial burden on discoms on account of launching 24-hour power supply for the agricultural sector would be subsidised by the state government. In the ARR submitted to the ERC, the discoms have not mentioned the subsidy to be paid by the government.
