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Telangana: Over 7L people to be subjected to ACD charges for non-payment of bills

Telangana State Northern Power Distribution Company Limited (TSNPDCL) has announced that 7.16 lakh customers who have not paid their bills will be charged Advance Consumption Demand (ACD).

A Gopal Rao, chairman and managing director of the power distribution company, stated on Thursday that the pending bills in Telangana totaled approximately Rs 305 crore.

“The decision was in line with the guidelines issued by the Telangana Electricity Regulatory Commission (TSERC) and notices regarding ACD charges were issued in January,” remarked the director.

Gopal Rao further said that the interest on the ACD charges would be calculated according to the RBI guidelines and would be adjusted in the consumer’s bill.

“The TSNPDCL has been collecting ACD, a refundable security charge from consumers by asking them to pay an amount equal to their electricity bill for two months,” added Gopal Rao.

“ACD is based on the monthly average power consumed by each consumer for a year and collected in order to provide better services to consumers,” said the director.

Dismission rumours being circulated on social media regarding ACD, Gopal Rao stated that the TSNPDCL has no plans to raise the power tariff and dismissed the news as false.

Monthly tariff ‘shocks’

It was reported that the Central Electricity Department has asked the Electricity Commission to prepare a new formula to increase the financial burden on the consumers for the fuel used in electricity production and electricity purchase prices every month. New guidelines have been issued by amending the Electricity Regulation 2005 to automatically pass on the burden to electricity consumers.

According to the guidelines, the Electricity Commission will develop a formula within 90 days to automatically transfer load in the tariff of electricity consumers on a monthly basis. It is also specified that the actual monthly charge will be calculated on an annual basis. The Electricity Commission has stated that these rules will remain in effect until the new formula is finalised.

 

 

 

 

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