Fuel surcharge adds to woes of power consumers in AP

Already bearing a heavy burden due to a steep hike of over Rs 6,300 crore in tariff, power consumers in Andhra Pradesh will now have to cough up an additional Rs 609 crore in the form of Fuel Surcharge Adjustment (FSA) for the third quarter of 2012-13 fiscal.

The state government, which is under severe attack from all quarters over the unprecedented hike in power tariff as well as levy of FSA, failed to keep its word on relieving the consumers of the fresh burden.

Chief Minister N Kiran Kumar Reddy said the government will try to ensure there was no burden of fuel surcharge adjustment on consumers this year.

"Though we are buying power from outside sources at a high cost due to scarcity of gas and coal and also hydel power, we will try to see that FSA is not levied," Kiran had promised on April 4.

Contrary to his assurance, the AP Electricity Regulatory Commission today issued orders permitting the four state-run Power Distribution Companies (Discoms) to collect a sum of Rs 609.30 crore as FSA for October-December 2012 for the additional power they purchased from outside sources in view of the prevailing electricity crisis.

Though the Discoms submitted proposals for levying a total FSA of Rs 1068.28 crore, the ERC permitted them to collect only Rs 609.30 crore after considering objections raised by various parties and also calculating the eligible units (of power) as determined in the Commission's tariff order.

The order, issued by ERC chairman A Raghotham Rao, said the FSA would be collected along with the monthly power bills of July, August and September 2013.

Barring agriculturists, all other categories of power consumers in the state will have to bear the burden of FSA.