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Power tariff hike leaves 10% burden on TS Inc
“The power tariff hike will impose 10-15 per cent burden on the industries. In addition to the 7.5 per cent hike approved by the TSERC, there will also be an increase in MD (maximum demand) charges.
: The recent hike in power tariff by the Telangana government, which will come into effect from July 1, is expected to leave a 10-15 per cent additional burden on the industrial sector across the State.
“The power tariff hike will impose 10-15 per cent burden on the industries. In addition to the 7.5 per cent hike approved by the TSERC, there will also be an increase in MD (maximum demand) charges.
So, the cumulative hike will be up to 15 per cent,” V Anil Reddy, former president, Federation of Telangana and Andhra Pradesh Chambers of Commerce and Industry (FTAPCCI), told The Hans India.
According to him, of the increased amount of over Rs 1,500 crore ratified by the Telangana State Electricity Regulatory Commission (TSERC), the industrial sector would have to bear over 45 per cent.
He also pointed out that the TSERC went for more increase in power tariff than that was proposed by the power distribution companies (Discoms).
“The problem area is that the regulator has gone for higher increase for industrial sector than the Discoms have proposed. Normally, regulators give consent for the quantum of hike proposed by the Discoms or less than that. In this case, the hike is more that what the Discoms have sought which is unprecedented as far as I know,” Reddy explained.
A statement from the FTAPCCI pointed out that the Discoms proposed a tariff of Rs 6.45 per unit for HT IA 11 KV (Industry) consumers while the TSERC fixed the tariff higher at Rs 6.65 per unit.
For 33 KV consumers, the proposed tariff was at Rs 6.02 per unit, while the regulator fixed it at Rs 6.15. The Discoms proposed Rs 5.49 per unit for consumers who use 133 KV and more power, but the regulator finalised Rs 5.65 per unit as tariff.
Meanwhile, A P K Reddy, president, Federation of Small and Medium Enterprises (FSME), observed that the power tariff hike might not impact the industrial sector adversely. “
The Telangana government is providing continuous power supply to the industries. Power supply is more important for the industrial sector as any interruptions in supply will lead to huge losses as happened in the past,” the FSME president said.
According to him, the costs of raw materials used for power generation have gone up considerably and there is also the inflation factor. “I don’t foresee major opposition from industries against the tariff hike as long as Telangana government provides uninterrupted power supply.
Many industrial units which suffered in the past on the account of power cuts are yet to be back on the track,” he pointed out. He has however sought removal of fixed power charges which are crippling rice mills, ferroalloy units and several other units.
The fixed charges are a big burden on these units as they have to cough up the amount whether they use power or not,” A P K Reddy maintained.
By:P Madhusudhan Reddy
