Andhra projects 10,930 mn units power surplus for FY2017-18

Andhra Pradesh today projected a surplus of 10,930 million units of power in 2017-18, but a heavy dose of tariff hike for consumers looks inevitable as the power utilities peg revenue deficit at Rs 7,177 crore.
The two power distribution companies (Discoms) - APSPDCL and APEPDCL - of the state today submitted their annual revenue requirement to the Electricity Regulatory Commission estimating the annual revenue requirement at Rs 30,069 crore.
Despite a likely government intervention hike in power tariff for consumers looks inevitable, sources in the Energy Department said.
While they projected revenues of Rs 22,892 crore as per the existing tariff structure, the discoms will be left with a revenue deficit of Rs 7,177 crore with the revenue gap being Rs 1.42 per unit.

The state's energy requirement is estimated to be 57,018 million units in 2017-18, whereas the availability will be 67,948 MU, leaving a surplus of 10,930 million units.
Of the surplus power, the state estimates to sell 2,208 MU during certain months when the exchange price is higher than the variable cost.

Last year, the discoms had projected a power surplus of over 7,000 MU.
Of the total revenue deficit of Rs 7,177 crore, the state government is expected to chip in about Rs 3,500 crore in the form of subsidies, while the ERC is expected to adjust another Rs 1,500 crore.

The discoms will still be left with a deficit of over Rs 2,177 crore.
The ERC will have to conduct public hearings on the ARR before deciding on the power tariff for the coming fiscal, the sources added.