TS discoms propose 5.75% hike in tariff

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Telangana power utilities have proposed an increase of Rs 1,088.88 crore or 5.75 per cent in annual revenues through the corresponding tariff hike for the financial year beginning April, 2015.

The two discoms —Telangana State Southern Power Distribution Company Limited (TSSPDCL) and Telangana State Northern Power Distribution Company Limited (TSNPDCL) — together filed their annual revenue requirement (ARR) and tariff hike proposals with the state electricity regulatory commission (TSERC).

According to these proposals, the power utilities would require about Rs 26,473.76 crore revenues to supply power to various categories of consumers during 2015-16 as compared with the revenue realisation of Rs 18,908.8 crore based on the existing tariff.

Of this, the requirement of TSPDCL, which supplies power to Hyderabad and surrounding industrial areas among other districts, was kept at Rs 18,874.81 crore as compared with the existing revenue of Rs 15,362 crore and the remaining Rs 7,598.95 crore was shown as the requirement for TSNPDCL as against the existing revenue of Rs 3,546.83 crore, double the requirement in the case of the latter.

Through the tariff hike, SPDCL and NPDCL are expected to mobilise an additional revenue of Rs 825.61 crore and Rs 260 crore respectively.

However, even after taking into account Rs 1,088.88 crore in additional revenues that they propose to mop up during the next year, the power utilities will still be left with a revenue deficit of Rs 2,687.18 crore.

The regulator would issue tariff orders in the next few weeks after completing the mandatory public hearings on the ARR filings while taking into account the amount of subsidy support indicated by the government. Most of the subsidy support goes to the free power scheme for the agriculture sector and to the lower slabs of the domestic category consumers.

According to the sources in the know, the power utilities have proposed a status quo on tariff of domestic households for up to a consumption of 100 units. However, a marginal hike is said to have been proposed for the 101-200-unit slab.