The Telangana State Electricity Regulatory Commission (TSERC) gave the green light on Wednesday to hike the state’s power tariffs by 14%. The discoms, on the other hand, sought approval for a 19% hike in power tariffs, imposing an additional cost of Rs 6,832 crore on all sorts of consumers.
Domestic consumers would have a 40-50 percent increase in charges, while other categories will see a Rs 1 per unit increase. Following the hike in power tariffs, LT (low-tension) consumers will have an additional burden of Rs 2,110 crore, while HT (high-tension) consumers will face an additional burden of Rs 4,721 crore.
The discoms filed their proposal for a power tariff increase to TSERC on December 28 after the latter gave them a week to submit the proposal. TSERC received the Aggregate Revenue Requirement (ARR) and Retail Supply Tariff for 2022-23.
Discoms filed ARRs for 2022-23 with a revenue deficit of Rs 10,928 and an estimated cost of Rs 53,054 crore to supply power. At current prices, the discoms estimate revenue earnings of Rs 42,196 crore.
It stated that the increase in power tariffs will result in increased revenue of Rs 6,831 crore, with another Rs 4,097 crore produced through government assistance and internal efficiency measures.
In the meantime, the state government would continue to provide subsidies to the agriculture sector, SC and ST domestic consumers, hair salons and laundries, as well as a Rs 2 per unit concession to power looms, poultry farms, spinning mills, and others.
Since 2015, the state government has not raised power tariffs, causing discoms to experience massive losses. The pandemic also had a significant impact on discoms’ finances.
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Many individuals and private organisations had opposed the hike in power tariffs with the TSERC receiving 152 objections on the power tariff hike. The commission had held a public hearing, which some of the organisations and individuals had attended.
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