Vijayawada: CPM state committee strongly condemned the proposed additional burden of Rs 12,771 crore in electricity charges under the guise of ‘True-Up’ adjustments. The party is demanding the immediate withdrawal of this proposal and has called on the public to make the ‘Praja Vedika’ protests on August 5 a success.

In a statement here on Friday, CPM state secretary V Srinivasa Rao criticised the move, noting that while the government claims it is not increasing electricity tariffs, the distribution companies have submitted proposals to the Electricity Regulatory Commission to levy a True-Up charge of Rs 12,771 crore for the period between 2019-20 and 2023-24.

Srinivasa Rao said that this could not have happened without the state government’s knowledge and urged the government to intervene immediately to halt the proposed hike.

He pointed out that over the past 36 months consumers have already paid Rs 3,000 crore in True-Up charges for the 2014-19 period. After the new coalition government came to power, an additional burden of Rs 15,485 crore was imposed in adjustment charges for 2022-23 and 2023-24.

Furthermore, consumers have been charged an extra 40 paise per unit every month for the current financial year (2024-25), collecting another Rs 2,787 crore. He also mentioned that smart meters would lead to further financial burdens.

Srinivasa Rao accused the coalition government of breaking its promise to reduce electricity charges, a pledge made during the election. He pointed out that despite recent public announcements about a reduction of Rs 449 crore through a ‘True-Down’ adjustment, the distribution companies have simultaneously proposed a massive increase. The Electricity Regulatory Commission issued a notification on July 30 seeking public feedback on the proposal.

The CPM leader declared that the practice of collecting True-Up charges years after the initial tariffs were set is illegal. He alleged that the government and distribution companies are using this system to increase costs through illegal agreements and corruption with corporate companies, ultimately passing the burden onto consumers.

The party has called on the public to participate in the protests organised by Praja Vedika on August 5 to oppose the electricity tariff hikes, demand the abolition of True-Up and fuel adjustment charges, and reject the implementation of smart meters.