‘True Up’ not to hit power costs

AP power utilities had proposed a tariff hike to “mitigate the huge losses” that occurred due to the ‘True Up’ charges. Asked about it, D. Prabhakar Rao, chairman and managing director of Telangana Transco and Genco, said: “Why? Our government has taken over those bonds and pledged full financial support. There is no need at all (to hike tariff) and the so-called burden is a closed chapter. To my understanding, we have not approached the Commission and we see no need to approach it at all.”

“We have not discussed the matter at all at any level so far. The True Up charges were taken into consideration while we prepare the annual requirement reports. Based on them, our tariff structure was decided. We don’t need to revisit it,” said Mr K. Venkata Narayana, CMD of the northern discom.

The Financial Restructuring Plan scheme of the Centre and the financial support from the state governments have in fact bailed out many discoms.

According to the ARRs submitted in April this year, the Telangana power utilities have stated that “under FRP scheme, accumulated losses of them as on 31st March 2013 was considered and was partly taken over by the state government through issue of bond and the balance needs to be serviced by the discoms through short-term loan. As on date they have structured short-term loan of Rs 1,225 cr. The principal repayment of this loan is scheduled to start from FY 2017-18 onwards after a three year moratorium.”