Decision on power tariff revision soon
With the Centre assuring the Chief Minister K Chandrashekar Rao to rescue power utilities from financial crisis under the Uday (Ujwal Discom Assurance Yojana) scheme during his recent visit to New Delhi, the CM is scheduled to take a final call on power tariff hike at a crucial meeting with the heads of Discoms that is to be held on Monday.
Hyderabad: With the Centre assuring the Chief Minister K Chandrashekar Rao to rescue power utilities from financial crisis under the Uday (Ujwal Discom Assurance Yojana) scheme during his recent visit to New Delhi, the CM is scheduled to take a final call on power tariff hike at a crucial meeting with the heads of Discoms that is to be held on Monday.
The officials of TSSPDCL and TSNPDCL have been asked to attend a meeting convened by the Chief Minister to discuss the benefits accrued under Uday scheme in detail. The scheme was launched by the BJP-led NDA government to provide aid to the power Discoms, which have been facing financial difficulties due to the increased burden from highly subsidised power supply as well as the escalation of maintenance cost in the recent years.
Talking to The Hans India, the Telangana State Southern Power Distribution Company Limited (TSSPDCL) Chairman and Managing Director G Raghuma Reddy told that the quantum of proposed tariff hike for domestic, commercial and industrial sectors would depend on the financial assistance rendered through UDAY scheme to the utilities. As of now, the Annual Revenue Requirements (ARRs) have been prepared based on the financial status of the two Discoms.
Depending on the assurances given by the Union ministry of power, the ARRs and tariff hike would be revised at the meeting with the Chief Minister. “The burden on consumers will be less if the assistance from Uday scheme is high," Reddy said. The TS Electricity Regulatory Commission (TSERC) had set February 15 as the deadline for the filing of ARRs.
Under the present circumstances, the utilities are planning to postpone the ARRs filing by another two to three days. A final decision would be taken only after the meeting with the CM. The TSSPDCL and the TSNPDCL are facing the revenue deficits of Rs 6,000 crore and Rs 7000, respectively, due to the increased cost of power purchase, mounting establishment charges and the supply of subsidised power to agriculture and domestic sectors.
Last year, the TSERC determined the ARR at Rs 23,416 crore- Rs 16,275 for TSSPDCL and Rs 7,414 crore for TSNPDCL. It approved Rs 19,189 crore revenue after the increase of tariffs. This year, the two power utilities have prepared the ARRs at Rs 28,000 crore without taking in to consideration Uday scheme.