HYDERABAD: The Telangana Corporation Distribution of State Power is all set to look for a rise in rates of the various sections of consumers.
The TSSPDCL has begun an exercise on its annual revenue requirement (ARR) by collecting data on the cost of power purchase, transmission and distribution charges incurred by them in the last two years. Proposals are being prepared by the utility company in the direction of the Secretary of Energy. A similar exercise has been adopted by Northern Power Distribution Company Limited (NPDCL), sources said.
The power discoms hurry to review the rates by filing ARRs before the supervisory board of state power. The discoms that have been collecting fuel surcharge (FSA) of consumers during the past two years setting, was arrested this month (September 2014). The current tariff structure is set two years ago. Last year, the discoms sought a tariff revision from April 1, 2014, but the AP Electricity Regulatory Commission (APERC) shot down the proposal due to various reasons, including the bifurcation of the state.
At that time, as part of the ARR, the discoms propose to increase the power tariff for the domestic sector by 50 paise per unit, for those who consume less than 150 units, and Re 1 for those consuming above that. For the commercial sector, the discoms proposed hike by Rs 2.16 per unit charges. They asked permission to impose a tariff of feeding an additional Rs 9.339 million rupees in its ARR for the year 2014-15.
"While the average cost of power purchase for the year 2013-14 was Rs 5.25 per unit, which rose to 6.32 crore in 2014-15 financial year. Under these prevailing conditions, the discoms are forced to increase rate. already "a senior official said TSSPDCL sector appears not be spared the increase.
Although the discoms have not yet finalized the amount of increase, senior commercial branch, said the fee would be more this time, since I have not been revised in the last two years. There was severe power shortage in Telangana this year due to delayed monsoon and scarcity of coal energy production. The discoms had purchased power from other states by holding power purchase agreements in the short term to meet shortge. Long power outages resulted in repeated protests by farmers and attacks on power grids.
With the huge spending on energy purchases, the TSSPDCL only incurred the loss of about Rs 900 million rupees in 2013-14 and this year the losses are estimated to touch Rs 1,500 crore. There was a drop in income due to various reasons. While it is estimated to earn Rs 17,950 crore in revenues in 2013-14 years, won only TSSPDCL Rs 17,050 crore.
Normally ARRs filed for exercise and new rates are effective from 1 April of the financial year. But this time, the authorities plan to submit proposals for 2013-14 and 2014-15 years separately and request permission from the Commission revision control rate of January-March 2015, as interim tariffs. The ARR of 2014-15 sought to impose a completely revised from April 1, 2015 rate.
"The discoms have just started preliminary exercise and completed in a month. ARR proposals be submitted to the Energy Regulatory Commission Telangana State (TSERC) in October 2014," President and CEO TSSPDCL InCharge T Raghuma Reddy said TOI on Friday.
In the presentation of ARR for 2013-14 and 2014-15 separately looking mid-term rate, Raghuma Reddy said that "we will follow the proposed lists and the rest depends on the decision TSERC."
The state government has already begun efforts to appoint a chairman and two members to TSERC. A selection committee was formed with P Swaroopa Reddy, a retired Superior Court judge as chairman a month ago for the appointment of chairman and members of the committee.
