Telangana Discoms propose revised power tariffs, TGERC to hold public hearings
At present, a fixed charge of Rs.10 per kilowatt is charged if the electricity used by households exceeds 300 units per month. The discoms have asked to be allowed to raise it to Rs.50. For HT consumers, the discoms have asked to increase the fixed charge of Rs. 475 per kilowatt to Rs. 500 from the industries.
Published Date - 19 September 2024, 08:34 AM
Hyderabad: The State-run power Distribution Companies (Discoms) have proposed to revise electricity charges in the State. The Annual Revenue Requirement Report (ARR) for the current financial year (2024-25) was submitted to the Telangana State Electricity Regulatory Commission (TGERC) late on Wednesday night.
The Discoms have proposed to revise the charges in all three categories. If the recommendations are approved by the ERC, the discoms estimate that they will get an income of Rs 1,200 crore to cover the deficit. The ERC will give a final verdict after conducting public hearings on these proposals in the presence of the public at least three places in the State. After that the revision of charges will come into effect. This whole process takes 90 days.
The Southern Power Distribution Company of Telangana Limited (TGSPDCL) and the Northern Power Distribution Company of Telangana Limited (TGNPDCL) have estimated a deficit of Rs 14,222 crore between their income and expenditure this year. In this amount, Rs. 13,022 crore have been requested to be provided by the State government through the budget. These two organizations said that they are giving proposals for revision of charges to cover the remaining shortfall of Rs. 1,200 crore.
Impact on household consumers minimal, claim discoms
At present, a fixed charge of Rs.10 per kilowatt is charged if the electricity used by households exceeds 300 units per month. The discoms have asked to be allowed to raise it to Rs.50. The government is providing free electricity to households consuming less than 200 units per month under the Gruha Jyothi scheme. Also, there will be no increase in line charge for houses up to 299 units. According to the discoms more than 1.30 crore houses in the State have electricity connections. As more than 80 percent of them use less than 300 units, the increase in fixed charges will not be a burden on most people, the discoms observed.
At present there are three types of connections in the general category of HT industries. Out of this, the industry which has taken connection with the capacity of 11 KV is charged at the rate of Rs. 7.65 per unit for the electricity consumed 33 KV connection is charged at the rate of Rs 7.15 and 132 KV at the rate of Rs. 6.65. Henceforth, the discoms have demanded to be allowed to charge only Rs. 7.65 per unit from all categories of industries. They asked to increase the fixed charge of Rs. 475 per kilowatt to Rs. 500 from the industries.
The revised ARR for the financial year 2025-26 has to be submitted by November.
Discoms have to submit ARR proposals to the ERC by November 30 before revision of electricity charges at the beginning of every financial year, but last year, the then government could not do so due to the assembly election on November 30. Discoms were reportedly asked to submit the ARR by January 2, but since they failed to do so, the ERC had once again asked it to submit the ARR by January 31.
The Discoms wrote a letter to the ERC on January 30, 2024, to grant further time of three months for filing of ARR and tariff proposals for 2024-25. The ERC issued orders stating that existing power tariff for domestic consumers will continue from April 1 onwards, as Discoms have requested for an additional three months of time for the submission of ARR.
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