Power Regulator Cites 60-year-Law to Defend its Direction to Govt to Pay Up
HYDERABAD: The Telangana State Electricity Regulatory Commission (ERC) on Monday said that it passed orders in pursuance of a letter from the state government for extending free electricity under 'Gruha Jyothi Scheme' up to 200 units per month to eligible domestic households in the state for issuing zero bill.
In its order, ERC asked the state government to pay up the cost of free power to the power distribution companies (Discoms) to generate zero bills, inviting a strong rebuke from Chief Minister A. Revanth Reddy on Sunday.
In response to Revanth Reddy’s remarks, the Secretary of the ERC said that the Electricity Act, 1965, stipulates that If the state government requires the grant of any subsidy to any section in the tariff determined by the ERC, the state government should pay in advance and specify the same. "In the matter of the zero bill, the electricity bill cannot be zero unless the government has released to the distribution company for the electricity charges payable by the consumers in advance," the secretary said.
The Telangana government also in its letter addressed to the ERC said that it will release the requisite subsidy to the Discoms to generate zero bills for Gruha Jyothi beneficiaries. It was also clarified that the distribution companies were directed "to ensure timely and advance release of subsidy amounts for beneficiaries under "Gruha Jyothi Scheme" from the state government and issue zero bills accordingly."
Whereas in the case of the agricultural sector, the retail supply tariff for agriculture other than corporate farmers', the tariff itself is 'zero' as no energy meters were set up for recording monthly-consumption of power by individual agricultural consumers.
The individual agricultural consumers, referred to in the Retail Supply Tariff Orders of the Commission and listed for subsidy by the Telangana government. Even in this case also, the distribution licensees are not issuing zero bills, but they are issuing electricity bills once in every six months towards customer charges.
In all other free power schemes for SC/ST consumers (up to 101 units per month), and free electricity to hair cutting salons, laundry shops and dhobi ghats (up to 250 units per month), the state government did not issue any directions to the Commission as the amount of bills is reimbursed.
