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AP, TS Discoms to have separate tariff structures
Bogged down by the persistent loses, the power utilities in both Andhra Pradesh and Telangana States have come up with an idea of recommending separate tariff structure for each Discom from the next financial year.
Hyderabad: Bogged down by the persistent loses, the power utilities in both Andhra Pradesh and Telangana States have come up with an idea of recommending separate tariff structure for each Discom from the next financial year.
Under the new structure, the tariff burden on the electricity consumers would vary from each Discom depending on its performance. For instance, the consumers who come under the purview of the APEPDCL would have to pay lower tariff when compared to other consumers of the APSPDCL. Since EPDCL is a profit-making company, the consumers would be spared from the huge tariff burden while the debt-ridden SPDCL consumers would have to shell out more.
The objective of the new proposal is to see that every Discom becomes self sufficient in terms of its revenue earning and competes in the area of reducing transmission and distribution losses. If this was achieved, then it would be possible for them to give quality power, the EPDCL Chairman and Managing Director MV Sheshagiri Babu said.
Under the existing tariff policy, the power utilities submit their ARR (Aggregate Revenue Reports) along with new tariff proposals every year to the Electricity Regulatory Commission (ERC). The Commission gives its nod to the proposals after scrutiny. As of now, all the consumers bear equally the financial burden of the Discoms whose performance has not been good. This practice has been in place since the year 2000.
According to sources in power utilities, the APEPDCL was having a net profit of Rs 500 crore while the SPDCL was in deep crisis due to various reasons. In Telangana, the performance of the TSSPDCL was above normal as against the TSNPDCL (Northern Power Distribution Company Limited, Warangal).
The TSSPDCL official said that the power utilities want to implement this new system from 2015-16. However, it remains to be seen if the State government would accept such a proposal or not. The government would also have to study the legal implications of this as nowhere else in the country such a system was in vogue, the sources said.
