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AP Discoms have proposed a tariff hike for some segments of commercial, industrial, including ferro alloys units and domestic consumers in the tariff proposals submitted with the AP Electricity Regulatory Commission (APERC) for 2012-2013.
In the proposals filed today with the regulator, they have spared some sections such as 29.8 lakh famers, 1.01 crore domestic consumers, 55 per cent of commercial consumers, cottage industries, dhobhi ghats and power looms.
According to a statement from the Energy Coordination Cell, Government of Andhra Pradesh, AP Discoms have filed the Annual Revenue Requirement (ARR) and tariff proposals with an estimated energy requirement of 93,913 MUs (million units). The availability is likely to be around 81,464 MUs, leaving a deficit of around 12,449 MUs.
Power purchase
To bridge the energy deficit, AP Discoms have proposed to purchase 12,449 MUs through medium/short-term arrangements. The ARR is around Rs 35,062 crore and the projected revenue from the current tariffs is around Rs 24,009 crore, leaving a gap of around Rs 11,053 crore.
The Discoms have proposed to realise additional revenue of Rs 4,950 crore through tariff proposals, thereby bringing down the projected revenue deficit to Rs 6,103 crore.
However, the actual revenue deficit would be determined by APERC.
According to a statement, AP Discoms are constrained to propose tariff increase due to substantial increase in revenue deficit due to increase in power purchase cost, network cost and cost of coal and gas leading to increase in cost to serve.
There has been no major tariff increase in the last nine years except marginal increase for some restricted categories during 2010-11.
This tariff hike is basically proposed to make AP Discoms financially viable. While proposing tariff hike, Discoms have taken care of the interests of the poorer sections of the society.
Out of the total 2.57 crore consumers, 1.42 crore consumers including 29.8 lakh farmers would not be affected by the tariff hike.
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