ERC rejects most tariff increase proposals of Discoms, provides relief to consumers

Telangana Electricity Regulatory Commission rejects most tariff increase proposals, providing relief to domestic consumers and increasing concessions for non-domestic categories.

HYDERABAD

Electricity consumers, particularly those of the domestic category, in the State, can heave a sigh of relief with the Telangana Electricity Regulatory Commission (TERC) rejecting most of the tariff increase proposals made by the two power distribution companies (Discoms) in the form of fixed charges.

The regulatory body, however, partly considered tariff hike proposals of the Discoms for the non-domestic categories, mostly in the form of fixed charges. Except for the lift irrigation (LI) schemes, the Commission has also retained the existing tariff.

In a move to help the Discoms retain the non-domestic consumers seeking open access during the non-peak (10 p.m. to 6 a.m.) hours, the Commission has increased the tariff concession as part of the Time of Day (ToD) charges from the existing ₹1 per unit to ₹1.5 per unit.

“Overall, the Commission has approved net gap in revenue with the approved tariff at ₹4,015.06 crore for Southern Power Distribution Company of Telangana Ltd (TGSPDCL); ₹7,141.35 crore for Northern Discom (TGNPDCL) and ₹343.11 crore for Cooperative Electricity Supply Society (CESS) Sircilla, all of it totalling to ₹11,499.52 crore,” Commission Chairman T. Sriranga Rao said on Monday.

Announcing the retail supply tariff for 2024-25 with prospective effect (for five months from November) and seven other multi-year tariff proposals of Genco, Transco, SLDC and wheeling business till 2028-29 along with and Members M.D. Manohar Raju (Technical) and B. Krishnaiah (Finance), Mr. Sriranga Rao said the direct subsidy given by the government to various sectors would be ₹11,499.52 crore. The State government has proposed ₹16,398.16 crore support to power utilities in the budget for 2024-25.

Going into the details, Mr. Rao said the two Discoms had sought an aggregate revenue requirement of ₹57,728.90 crore but the Commission had approved for ₹54,183.28 crore and their approved revenue deficit would be ₹11,156.40, with the approved tariff, for the remaining five months of the fiscal. He stated that the overall reduction in tariff was ₹0.47 per unit, all categories put together including fixed and other charges, compared to the existing tariff.