No power tariff hike in Telangana for next year

Hyderabad: Power consumers have got good news ahead of the New Year 2023: Telangana power distribution companies — Telangana State Northern Power Distribution Company Limited (TSNPDCL) and Telangana State Southern Power Distribution Company Limited (TSSPDCL) — have not proposed any increase in the existing power tariff for 2023-24 financial year.

According to power tariff proposals that the discoms have submitted to the Telangana State Electricity Regulatory Commission (TSERC) on Wednesday, annual aggregate revenue requirement (ARR) for the coming financial year is Rs 54,060 crore. Energy requirement is 83,111 million units (MU) and sales projection stands at 73,618 MU.

TSSPDCL submitted ARR for Rs 36,963 crore and TSNPDCL for Rs 17,095 crore. Total revenue expected from the present tariff is Rs 43,525 crore, with the revenue gap of Rs 10,535 crore.

The discom-wise revenue gap is Rs 3,211 crore in TSSPDCL and Rs 7,324 crore in TSNPDCL. Subsidy expected from the state government is Rs 10,535 crore. However, the proposed actual cost of service per unit is Rs 7.34 for the financial year 2023-24. The actual cost of service approved by TSERC for 2022-23 is Rs 7.03 per unit.

Speaking to reporters here on Wednesday, Telangana State Electricity Regulatory Commission chairman T. Sriranga Rao said that TSSPDCL and TSNPDCL have submitted annual aggregative revenue requirement (ARR) and power tariff proposals. Both the discoms sought to continue the existing power tariff for next financial year (2023-24).

After careful verification, he said the proposals will be made available for people on the TSERC website. “We will declare public hearing dates on tariff proposals to invite objections from the people soon”, he said.

Sriranga Rao said a retail tariff order will be issued after hearing out different sections. “The orders will come into force from April 1, 2023,” he added.

“The discoms proposed no hike in existing power tariff for the next financial year, but we will take final decision over power tariff, whether to increase or continue the existing tariff after careful consideration of the financial position of both the discoms,” the chairman explained.

There are requests from various sections to alter the power category of government schools and religious places and an appropriate decision will be taken, he said.

The discoms sought to collect energy adjustment charges due to hike in coal prices, which will affect power purchase expenses, he said.

ERC approved to collect energy adjustment charges up to 30 paise per unit, he said, adding that final rules will be formed after the state government approves the hike in energy adjustment charges.

Sriranga Rao said TSERC directed in its previous tariff orders that the discoms take steps to install meters for agricultural distribution transformers. If AT and C losses are cut down to 15 per cent, TSERC will consider tariff proposals, he said. Few divisions reported more than 50 percent AT and C losses, he said.