Hyderabad: The power sector subsidy burden on the TS government would cross Rs 7,000 crore in 2018-19, against Rs 4,700 crore this year
The 24-hour power supply to the agricultural sector was expected to raise the burden by Rs 2,500 crore. Chief Minister K. Chandrasekhar Rao announced that this would be borne fully by the state government. There would be no increase in the power tariff next year also, it was announced.
Transco estimated energy available in 2018-19 would be 67,573 MU and requirement 64,291 MU after the supply to the agricultural sector. Transco projected 3,282 MU surplus power in 2018-19. The revenue requirement was Rs 35,774 crore and would include Rs 27,903 crore for power purchase.
The aggregate revenue requirement submitted by Discoms to AP Regulatory Commission did not reveal the revenue gap. With no increase of power tariff, the subsidy burden on the state government was bound to go up next fiscal.
Transco estimated the 24-hour power supply to agricultural sector to cost Rs 2500 crore as a result of additional power purchase. This would be in addition to the normal subsidy burden of the state government.
Transco can sell 3,282 MU of surplus power. Recently southern states came to an agreement to exchange surplus power among then instead of selling it through the power exchange. Almost all southern states had surplus power.
The cost of the unit right from generation to the end-point consumer would be Rs 6.42. Transco would have to depend on cross-subsidies and additional charges for improved revenue in the absence of a power tariff hike.
