VIJAYAWADA: Andhra Pradesh Chambers of Commerce and Industry Federation (AP Chambers) on Saturday requested centre and respective state governments to share 50 per cent of losses incurred by power distribution companies (Discoms), instead of permitting Discoms to collect the same from consumers.
AP Chambers president Pydah Krishna Prasad submitted a requisition in this regard to union minister for power R.K. Singh.
He said AP Chambers has received several representations from many of its members and several affiliated associations on Ministry of Power’s directive to state governments to levy 50 per cent of Discoms’ losses on consumers.
In this context, Krishna Prasad pointed out that the MSME sector has already been in doldrums for past five to six years on account of economic recession, Covid pandemic and Russia-Ukraine war. Their production costs have gone up exponentially due to increase in raw material, power and logistics costs.
The AP Chambers president underlined that power tariffs in Andhra Pradesh are extremely high – between ₹8 to ₹10 per unit depending on the category. In addition, true up charges are being imposed, which have made power costs high for enterprises. This, in turn, has made their products uneconomical in global markets.
Krishna Prasad feared that if Discoms start charging consumers for losses incurred by them, consumers will be overburdened. This will further escalate manufacturing costs and impact financial viability of industrial units, particularly MSMEs.
