YSR okays six-point strategy to arrest power tariff hike

Andhra Pradesh chief minister Y S Rajasekhara Reddy has approved a six-point strategy to be adopted by the Transmission Corporation of AP (APTransco) to prevent the need to hike power tariff of domestic consumers during the next financial year.

The strategy envisages reduction in transmission and distribution losses by 2 per cent from the existing 23 per cent to 21 per cent, ensuring 100 per cent billing of all registered consumers to shore up revenues, bringing down power purchase cost by following "merit order despatch," reducing the interest burden by swapping high cost loans with low cost funding, motivating farmers to adopt energy conservation methods and promoting industrial consumption by providing incentives and uninterrupted and quality power through dedicated express feeders.

The decision of the chief minister to not to increase power tariff next year, according to an official press release, will benefit 80 lakh domestic consumers in urban as well as rural areas of the state.

This decision, however, is subject to the approval of the AP Electricity Regulatory Commission.