Genco submits tariff proposals to TSERC

Genco submits tariff proposals to TSERC
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The Telangana Power Generation Corporation (TS Genco) has filed proposals for determination of tariff for the power it has been producing through its hydel and thermal units to sell it to the distribution companies (Discoms).

​Hyderabad: The Telangana Power Generation Corporation (TS Genco) has filed proposals for determination of tariff for the power it has been producing through its hydel and thermal units to sell it to the distribution companies (Discoms).

It has stated in the application submitted to the Telangana State Electricity Regulatory Commission (TSERC) that the total cost of power generation over a period of five years would be Rs 22,885 crores to produce 5,324 MW of power.

The TS Genco is filing the tariff proposals for the first time after the formation of Telangana.

After the formation of the state, the tariff has been not determined by the TSERC and they were determined on the basis of orders being given during the combined state period. Hence the tariff proposals submitted on Wednesday is from 2014-2019.

Genco officials said that as much 2282 MW of power would be generated through the five thermal old power stations and estimated the cost of Rs 10,701 crores.

This puts generation cost at Rs 4.68 crores per mega watt. The same for the old six hydel stations at Rs 2.18 crore per mega watt as it produces 2,081 MW of power at the cost of Rs 4,454 crores.

As far as new stations are concerned power production cost for through thermal is estimated at Rs 5.1 crores and for the hydel power and it is Rs 4.27 crores per mega watt.

The Genco has proposed costs like Return on Capital Employed (RoCE and working capital), depreciation, operation and maintenance expenses, income tax as per actual and other expenditure into consideration for determining the tariff.

The pay revision has also been included in the operations and maintenance cost. The liability of Rs 4,386 crores towards meeting the pension of the employees has been added to the generation costs.

It stated that it is necessary that the petitioner be provided with a legal basis for the claim and recovery of fixed, variable and other costs and amounts pending final disposal of this application for determination of tariff and determination of capital cost of new stations.

A senior official involved with the filing of the application told The Hans India that they would submit their proposed tariff to the ERC during the hearing on their proposals.

He said that after the formation of Telangana, Genco has filed the tariff proposals for the first time. He said that the tariff has been proposed taking all the ground realities into consideration and actual costs being born by it.

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