ERC Rejects DISCOMs Proposal To Increased Fixed Charge Of Over 300 Units Consumers

By IND Today News Desk Last updated Oct 29, 2024

ERC Rejects DISCOMs Proposal To Increased Fixed Charge Of Over 300 Units Consumers

Hyderabad, Oct 29 (Maxim News): In a major relief to domestic consumers using power over 300 units, the Telangana State Electricity Regulatory Commission (TGERC) has rejected the proposal of the two DISCOMs to increase the fixed charges from Rs. 10 to Rs. 50 per kilowatt for the financial year 2024-25. However, the Commission has allowed the discoms to increase fixed charges for consumers using power over 800 units to Rs. 50 per KW per unit from the current Rs. 10.

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Since the discoms did not propose an increase in tariff for domestic consumers, there will be no change in the traffic for the current financial year. The DISCOMs were expecting to get an additional revenue of Rs. 1200 crore through the hike proposed by it.

The TGERC Chairman T.Sriranga Rao whose term is going to end today, said the new tariff would be valid for the next five months of the current financial year and that if the DISCOMs submit the Aggregate Revenue Requirement (ARR) in December for the next financial year 2025-26, the Commission would look into it.

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As against the total ARR of Rs. 57,728.90 crore claimed by the Telangana Southern Power Distribution Company Limited (TGSPDCL) and Telangana Northern Power Distribution Company Limited (TGNPDCl), the commission has approved the ARR of Rs. 54,183.28 crore, he said.

The Chairman further stated that as against the total revenue gap at proposed tariffs of Rs. 13,022.25 crore claimed by the DISCOMs, the commission had approved the revenue gap of Rs. 11,156.40 crore for the financial year 2024-25. Similarly, the CESS, Sircilla proposed the revenue gap of Rs. 494.95 crore against which the commission approved Rs. 343.11 crore, he said.

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Commenting on the state subsidy, Sriranga Rao said the State government had agreed to pay a subsidy of Rs. 11,499.52 crore to DISCOMs during the current financial year. The subsidy commitment by the State government had increased by Rs. 2,374.7 crore more than the previous year. which was an increase of around 26 percent, he informed.

The DISCOMs proposed an increase of fixed charges for over 300 units of commercial consumers from Rs. 70 to Rs. 150, but the commission allowed it to charge Rs. 100 per KW. Similarly, the discoms proposed an increase in fixed charges for hoarding from Rs. 70 to Rs. 150, but the commission allowed it to charge Rs. 100 per KW.

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The Commission allowed the discoms to charge Rs. 100 per KW as fixed charges for industries, though the power utilities wanted to increase it to Rs. 150 from Rs. 70. The commission had allowed Time of Day (ToD) incentive on off-peak hours consumption from Rs. 1 per unit to Rs. 1.50 per unit. (Maxim News)