Discoms submits a tariff revision project; imminent increase in electricity charges


Hyderabad: State electricity distribution companies (Discoms) on Monday filed electricity tariff revision proposals with the Telangana Electricity Regulatory Commission (TSERC) asking for a 50 paise tariff increase per unit for domestic consumption and Rs 1 per unit for all remaining sectors for 2022-23 for LV Consumers (low voltage). For HV (high voltage) consumers, they asked for an increase of Rs 1 per unit.

The increase for LT consumers will impose an additional charge of Rs 2,110 crore and for HT consumers Rs 4,721 crore. Together, the tariff hike proposals impose an additional charge of Rs 6,832 crore on all types of consumers.

TSERC will hold public hearings on the rate increase proposals before granting its approval. The increase in electricity costs is expected to take effect from April 1, 2022.

The Discoms (TSSPDCL and TSNPDCL) submitted the Aggregate Revenue Requirements (ARR) and Retail Supply Tariff to TSERC for 2022-2023.

However, state government subsidies to the agricultural sector, domestic consumers of SC and ST, hairdressers and laundries, as well as a concession of Rs 2 per unit to power looms, farms poultry, spinning mills and others, will continue as usual. .

About 25.78 lakh consumers benefit from free and uninterrupted power supply for the agricultural sector. Likewise, free power supply will be provided to domestic SC and ST consumers up to 101 units per month as well as 250 units per month to salons run by members of the Nayi Brahmin community and laundries run by the washer community (Rajaka ).

The increase in electricity tariffs from April 1 seems inevitable as there has not been a tariff revision in Telangana since 2015. TS Discoms has suffered huge losses without tariff revision for the past six years. The two waves of the Covid pandemic also had a severe impact on the finances of the Discoms. In addition, the policies of the Center have also resulted in increased costs of electricity generation and transmission, including increasing the cost of clean energy from Rs 50 per tonne to Rs 400 per tonne, the cost of coal d ‘About Rs 800 per tonne, rail transport costs 40% over the past four years and also the increase in gasoline and diesel prices.

The Discoms have filed ARRs with a revenue deficit of Rs 10,928 crore for 2022-2023. While Discoms are expected to incur an expense of Rs 53,054 crore to provide electricity, the revenue generated is estimated at Rs 42,196 crore at current rates. The tariff hike will help generate additional revenue of Rs 6,831 crore and an additional Rs 4,097 crore will be generated through government support and internal efficiency measures.

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