Power tariff to increase in Telangana

The Energy Department has come out with a new proposal to put the burden of power purchase at high prices on electricity consumers

Hyderabad: In what comes as yet another blow to the tax payers in Telangana, the onus of power purchase is likely to land on the shoulders of electricity consumers. In view of increasing financial burden on the government due to purchase of power at high prices when the power demand was high, the Telangana Energy Department has come out with a new proposal to put the burden on the electricity consumers.

The department recommended the government to bring in separate power tariff structure for summer (when power demand is high) and other seasons when power demand is low.

The department recently submitted a report to the government making several suggestions including streamlining the tariff structure and the promotion of new and renewable energy generation as an alternative to hydal and thermal power.

The report said the government had been burdened by the increasing power purchase every agricultural season and summer when the power consumption became high. It resulted in DISCOMS falling in debt trap, making the utilities inefficient with the lack of financial resources. The department suggested if the tariff was imposed based on power demand and purchase, the efficiency of the utilities would increase. It asked the government to promote prepaid metres so that the non-payment of power bills by consumers could be avoided. Replacement of the existing mechanical metres with digital metres was also the need of the hour to stop of the pilferage of power.

Energy Secretary SK Joshi said the energy requirement for the State would be increased by 54 per cent in five years. He predicted that the energy demand would increase from 54,998 MU (million units) in 2014-5 to 84,496 MU in 2018-19.

The reasons for the increase of power demand are rapid growth in the districts particularly, Warangal, Nizamabad and Karimnagar and the setting up of ITIR (Information Technology Investment Region), lift irrigation projects and Hyderabad Metro rail. To meet the power demand, the report suggested the government complete all new projects proposed recently and continue the PPAs entered previously.

It is expected that the Kakatiya Thermal Plant being set up by TSGENCO would provide 8,500 MW of power and Singareni Project in Jaipur in Adilabad district would supply 1,200 MW.

The official report said the shelved Shankarapalli gas based power plant (planned to set up in Ranga Reddy district) should be revived. The plant would help to overcome power crisis in the capital city.

Following reports that the gas-based plants would soon get relief from gas scarcity, the officials said the continuation of the PPAs entered in the erstwhile AP would help Telangana to get the required power in the next five years.