Electricity tariffs: Discoms seek tax review in Telangana

Electricity tariffs | Hyderabad, Sept. 19: The Telangana Electricity Distribution Companies (DISCOMs) have proposed to review the state’s electricity tariffs.

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The Annual Revenue Requirement (ARR) report for the current financial year (2024-25) was submitted to the National Electricity Regulatory Council (ERC) on Wednesday evening.

If approved by the ERC, the amendments proposed in all three categories could generate an additional revenue of Rs.1.2 billion for the deficit.

The ERC will hold public hearings in three locations nationwide before making a final decision. The entire process is expected to take 90 days.

Electricity tariffs: Impact on domestic consumers

Discoms have proposed to increase the fixed rates for households consuming more than 300 per month from Rs. 10 to Rs. 50. However, this increase is unlikely to burden most consumers as more than 80% of households in the country use less than 300 units per month and are exempt from fixed charges under the Griha Jyoti scheme the bottom of the table.

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Electricity tariffs: Proposed Revisions for Industries

The discoms requested for consolidation of electricity tariff for all industrial units of Rs. 7.65 per unit with a fixed charge of Rs. 475 to Rs. 500 per kilowatt.

ERC penalizes discoms for late reporting

The ERC imposed a penalty of Rs. 21 lakh in Discom for the late submission of the ARR report. The report was originally due in November 2023 but was delayed due to elections. The ERC indicated that future delays could lead to increased penalties.

Next ARR report is due in November 2024

DISCOM has submitted a revised ARR report for the next financial year (2025-26) by November 2024.

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