Andhra Pradesh power distribution companies in their annual filing with the State Regulatory Commission have shown a revenue deficit of ₹7,716 crore with annual requirement of ₹30,308 crore and projected revenue from current tariffs at ₹22,592 crore.
Average cost of supply is pegged at ₹5.99 per unit, reflecting an increase of ₹0.80 per unit over financial year 2013-14, and this was approved by the regulator. The average revenue realisation is ₹4.44 per unit leaving a revenue gap of ₹1.55 per unit.
Such a gap has to be either met by the State government through subsidy or by hiking the tariff. The final decision of the regulator would be based on what the State plans to contribute.
As for projects, while the energy availability from long term sources is pegged at 54,884 million units, the unrestricted requirement is put at 58,191 mu, leaving an energy deficit of 3,307 to be met from short term power purchase.
The revenue gap has cropped up due to non revision of power tariff last financial year because of bifurcation of the State and the following elections. The State has assumed 100 per cent power supplies from the Hinduja power and Krishnapatnam power projects, estimated to contribute about 15,581 mu. However, this is being contested by Telangana which wants its share.