Aptransco Tariff Norms Against Power Reform Act

The Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) has contended before the state's electricity regulatory commission that tariff proposals of the Andhra Pradesh transmission company (APTRANSCO) are contrary to the provisions of the AP Electricity Reform Act, 1998.

Under Section 26 of the Act, the electricity commission is required to prescribe regulations that are to be published in the official gazette. The licensee has to observe these specified procedures in calculating expected revenue and in setting tariffs. Since no such guidelines had been published, the tariff proposals of APTRANSCO were not in accordance with law, the chamber argued.

 

The chamber submitted that at the time when APTRANSCO filed its tariff proposals, the state government had formed four separate distribution companies for distribution and retail supply of electricity.

As such, APTRANSCO should no longer be the distribution and retail supply licensee, and the retail tariff proposals filed by it are no longer valid.