ERC rejects DISCOMs proposal to increased fixed charges of over 300 units consumers

Since the discoms did not propose an increase in tariff of domestic consumers, there will be no change in the traffic for the current financial year.

Hyderabad: In a major relief to domestic consumers using power over 300 units, the Telangana State Electricity Regulatory Commission (TGERC) has rejected the proposal of the two DISCOMs to increase the fixed charge from Rs. 10 to Rs. 50 per kilowatt for the financial year 2024-25. However, the Commission has allowed the discoms to increase fixed charges for consumers using power over 800 units to Rs.50 per KW per unit from the current Rs. 10.

Since the discoms did not propose an increase in tariff of domestic consumers, there will be no change in the traffic for the current financial year. The DISCOMs were expecting to get an additional revenue of Rs.1200 crore through the hike proposed by it.

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Addressing a press conference here on Sunday, TGERC chairman T Sriranga Rao, whose term is going to end on Tuesday, said the new tariff would be valid for the next five months of the current financial year and that if the Discoms submit the Aggregate Revenue Requirement (ARR) in December for the next financial year (2025-26), the Commission would look into it.

As against the total ARR of Rs. 57,728.90 crore claimed by the Telangana Southern Power Distribution Company of Limited (TGSPDCL) and Telangana Northern Power Distribution Company of Limited (TGNPDCL) , the commission has approved the ARR of Rs. 54,183.28 crore, he said.

The Chairman further stated that as against the total revenue gap at proposed tariffs of Rs. 13,022.25 crore claimed by the DISCOMs, the commission had approved the revenue gap of Rs. 11,156.40 crore for the financial year 2024-25. Similarly, the CESS, Sircilla proposed the revenue gap of Rs. 494.95 crore against which the commission approved Rs.343.11 crore, he said.

Commenting on the State subsidy, Sriranga Rao said the State government had agreed to pay a subsidy of Rs. 11,499.52 crore to DISCOMS during the current financial year. The subsidy commitment by the State government had increased by Rs. 2,374.7 crore more than the previous year, which was an increase of around 26 percent, he informed.

As GENCO, TRANSCO, State Load Despatch Center(SLDC) and DISCOMs filed the petitions in August and September 2024 as against the timeline of January 1, 2024, the commission took a lenient view and restricted reduction of rate of Return of Equity(RoE) only for the first year of 5th control period of financial year 2024-25, the Chairman said, adding that GENCO would have an impact of RoE reduction of Rs. 396 crore, TRANSCO and SLDC Rs. 119 crore, DISCOM Wheeling business Rs. 62 crore and DISCOMs retail business Rs. 7 crore.

The discoms proposed an increase of fixed charges for over 300 units of commercial consumers from Rs.70 to Rs. 150, but the commission allowed it to charge Rs.100 per KW. Similarly, the discoms proposed an increase in fixed charges for hoardings from Rs. 70 to Rs. 150, but the commission allowed it to charge Rs. 100 per KW.

The commission allowed the discoms to charge Rs. 100 per KW as fixed charges for industries, though the power utilities wanted to increase it to Rs. 150 from Rs. 70. The commission had allowed Time of Day(ToD) incentive on off-peak hours consumption from Rs. 1 per unit to Rs. 1.50 per unit.