Delay in submitting ARR, tariff petitions will draw penalties: ERC Chairman

TGERC Chairman T said the Discoms failure to adhere to certain stipulated time frame for filing the petitions not only undermine public trust but also risk the financial viability of power distribution system, impacting consumers who depend on a stable supply of electricity.

Hyderabad: Expressing displeasure of over delay in filing Aggregate Revenue Requirement (ARR) petitions by Discoms, Telangana State Electricity Regulatory Commission(TGERC) chairman T Sriranga Rao said the Discoms failure to adhere to certain stipulated time frame for filing the petitions not only undermine public trust but also risk the financial viability of power distribution system, impacting consumers who depend on a stable supply of electricity.

Addressing the the 8th State Advisory Committee Meeting here on Saturday, Sriranga Rao said there had been instances where licensees(Discoms) and regulated generating companies had failed in filing the petitions within the stipulated timelines in terms of Principal Regulations, and the Commission had notified amendment regulations for levy of penalties for delay in filing the petitions.

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Citing a recent example, he said the licensees and GENCO had not filed petitions for determination of ARR and tariffs within stipulated time as per regulations, hence, in order to inculcate discipline in the licensees and generating companies, the Commission had levied penalties on the both of them in terms of regulations.

“It is important to understand that the penalty serves a dual purpose — first, it acts as a corrective measure intended to motivate the Discoms to rectify their shortcomings and improve their performance. Secondly, it emphasizes the Commission’s role as a vigilant guardian of public interest, ensuring that electricity consumers receive the quality of service they rightfully deserve,”he said.

Commenting on the time sought by few stakeholders to submit their views on ARR and tariff petitions filed by the Northern Power Distribution Company of Telangana Limited (TGNPDCL) and Southern Power Distribution Company of Telangana Limited (TGSPDCL), he said the Commission had scheduled the public hearings on these petitions from October 21 to 25 thereby having only 12 days time for the licensees to send their responses to the objectors and as such sufficient time was not there for the objector to study the responses and make submissions in the public hearing, the Commission had not extended the timelines.

“Failure to issue orders before the transition could expose the Discoms to considerable financial instability in the future. If these regulatory measures are postponed, we risk allowing the systematic inefficiencies to persist, leading to aggravated losses for the Discoms and harming the overall sustainability of the electricity supply in our State. Therefore, it becomes imperative that we act decisively to protect the interests of both the Discoms and the consumers they serve,”he said.