The TSSPDCL has begun an exercise on its Annual Revenue Requirement (ARR) by collecting data on power purchase costs, transmission and distribution charges incurred by them in the past two years. The proposals are being readied by the power utility on the direction of the energy department. A similar exercise has been taken up by the Northern Power Distribution Company Limited (NPDCL), sources said.
The power discoms are in a hurry to revise the tariffs by filing ARRs before the state power regulatory commission. The discoms, which have been collecting fuel surcharge adjustment (FSA) from the consumers for the past two years, stopped it this month (September 2014). The present tariff structure was fixed two years ago. Last year, the discoms sought a tariff revision from April 1, 2014, but the AP Electricity Regulatory Commission (APERC) struck down the proposal due to various reasons, including state's bifurcation.
At that time, as part of the ARR, the discoms proposed to increase the power tariff for the domestic sector by 50 paise per unit, for those consuming below 150 units, and by Re 1 for those consuming above that. For the commercial sector, the discoms proposed to hike charges by Rs 2.16 per unit. They sought permission to impose a Rs 9,339 crore additional power tariff in its ARR for the year 2014-15.
"While the average power purchase cost during the 2013-14 year was Rs 5.25 per unit, it rose to Rs 6.32 in 2014-15 financial year. In these prevailing conditions, the discoms have no choice but to increase the tariff. It appears no sector would be spared from the increase," a senior official of the TSSPDCL said.
Though the discoms have not yet finalized the quantum of increase, senior officials in the commercial wing said the tariff would be more this time as it has not been revised in the past two years. There was severe power shortage in Telangana this year due to delayed monsoon and coal shortage for power production. The discoms had purchased power from other states by entering into short-term power purchase agreements to meet the shortge. Long power cuts resulted in repeated protests by farmers and attacks on electricity substations.
With the huge expenditure on the power purchases, the TSSPDCL alone incurred loss of about Rs 900 crore in 2013-14 and this year the losses are estimated to touch Rs 1,500 crore. There was a dip in the revenue due to various reasons. While it was estimated to earn Rs 17,950 crore in revenue during 2013-14 year, the TSSPDCL earned only Rs 17,050 crore.
Normally ARRs are filed for financial year and new tariffs come into force from April 1 of the financial year. But this time, the authorities are planning to submit the proposals for 2013-14 and 2014-15 year separately and seek the regulatory commission's permission to revise the tariff from January to March, 2015 in the form of interim tariff. The 2014-15 ARR's will seek a fully revised tariff to be imposed from April 1, 2015.
"The discoms have just started preliminary exercise and would be completed in a month. The proposals of ARR would be submitted to Telangana State Energy Regulatory Commission (TSERC) by October, 2014," TSSPDCL incharge chairman and managing director G Raghuma Reddy told TOI on Wednesday.
On the filing of ARR for 2013-14 and 2014-15 separately seeking interim revision of tariff, Raghuma Reddy said "we will keep the proposals ready and the rest depends on the TSERC decision."
The state government has already started efforts to appoint a chairman and two members for TSERC. A selection committee was constituted with P Swaroopa Reddy, a retired High Court judge, as chairman a month ago for appointing chairman and members for the commission.
The power discoms are in a hurry to revise the tariffs by filing ARRs before the state power regulatory commission. The discoms, which have been collecting fuel surcharge adjustment (FSA) from the consumers for the past two years, stopped it this month (September 2014). The present tariff structure was fixed two years ago. Last year, the discoms sought a tariff revision from April 1, 2014, but the AP Electricity Regulatory Commission (APERC) struck down the proposal due to various reasons, including state's bifurcation.
At that time, as part of the ARR, the discoms proposed to increase the power tariff for the domestic sector by 50 paise per unit, for those consuming below 150 units, and by Re 1 for those consuming above that. For the commercial sector, the discoms proposed to hike charges by Rs 2.16 per unit. They sought permission to impose a Rs 9,339 crore additional power tariff in its ARR for the year 2014-15.
"While the average power purchase cost during the 2013-14 year was Rs 5.25 per unit, it rose to Rs 6.32 in 2014-15 financial year. In these prevailing conditions, the discoms have no choice but to increase the tariff. It appears no sector would be spared from the increase," a senior official of the TSSPDCL said.
Though the discoms have not yet finalized the quantum of increase, senior officials in the commercial wing said the tariff would be more this time as it has not been revised in the past two years. There was severe power shortage in Telangana this year due to delayed monsoon and coal shortage for power production. The discoms had purchased power from other states by entering into short-term power purchase agreements to meet the shortge. Long power cuts resulted in repeated protests by farmers and attacks on electricity substations.
With the huge expenditure on the power purchases, the TSSPDCL alone incurred loss of about Rs 900 crore in 2013-14 and this year the losses are estimated to touch Rs 1,500 crore. There was a dip in the revenue due to various reasons. While it was estimated to earn Rs 17,950 crore in revenue during 2013-14 year, the TSSPDCL earned only Rs 17,050 crore.
Normally ARRs are filed for financial year and new tariffs come into force from April 1 of the financial year. But this time, the authorities are planning to submit the proposals for 2013-14 and 2014-15 year separately and seek the regulatory commission's permission to revise the tariff from January to March, 2015 in the form of interim tariff. The 2014-15 ARR's will seek a fully revised tariff to be imposed from April 1, 2015.
"The discoms have just started preliminary exercise and would be completed in a month. The proposals of ARR would be submitted to Telangana State Energy Regulatory Commission (TSERC) by October, 2014," TSSPDCL incharge chairman and managing director G Raghuma Reddy told TOI on Wednesday.
On the filing of ARR for 2013-14 and 2014-15 separately seeking interim revision of tariff, Raghuma Reddy said "we will keep the proposals ready and the rest depends on the TSERC decision."
The state government has already started efforts to appoint a chairman and two members for TSERC. A selection committee was constituted with P Swaroopa Reddy, a retired High Court judge, as chairman a month ago for appointing chairman and members for the commission.
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