Hyderabad: The state government should either allow a tariff hike or give money to power distribution companies to overcome their deficit. Improving internal efficiency and raising alternative sources of revenue will not be sufficient to meet the Rs 1,958-crore tariff hike sought by the discoms.
Chief Minister K. Chandrasekhar Rao had asked officials not to burden citizens with a tariff hike and develop alternative ways to raise revenues. But officials said reducing transmission and distribution losses, pilferage of energy and expenditure will at the most save Rs 150 crore.
The exercise to reduce T&D losses requires huge investments. Andhra Pradesh has planned to invest Rs 6,000 crore in the next few years to bring down T&D losses to less than 10 per cent.
Experts said the Chief Minister’s suggestion was an effort to avoid bad name to his government before actually allowing a tariff hike. Even if the hike is allowed, discoms would still be left with a revenue deficit.
“The CM’s intentions may be good. But if he really wants to help the people, then the state should release the Rs 1,958 crore sought by the discoms,” said Mr M. Venugopal Rao of the Centre for Power Development.
He said the government should announce a plan to fill up the '8,789-crore revenue gap of the two discoms. “You cannot raise '1,958 crore in a year or two by improving internal efficiency and through alternative revenue sources,” Mr Rao said.
The Telangana government has agreed to hike tariff every year in its Power for All agreement with the central government. “Discoms have invested huge amounts to purchase power from private producers in addition to the state and the Centre’s share at the behest of the government which wanted 24x7 supply,” said a retired engineer from the power sector.
Mr M. Thimma Reddy, convener, People’s Monitoring Group on Electricity, said discoms seek a tariff hike after taking into account internal efficiency measures that would reduce losses.
“If the state government neither wants a tariff hike nor extends financial support, the discoms would have to hypothecate their assets to survive,” he said.
TSGenco chairman D. Prabhakar Rao said T&D losses of Telangana were 16.07 per cent compared to the national average of 27 per cent. “We are trying to convince the Chief Minister that a tariff hike is essential. Another option is compensating the discoms with finances,” he added.
