Telangana Discoms seek energy tariff hike in all categories to mop up ₹1,200 cr.

Telangana Discoms propose tariff hike for 2024-25, focusing on fixed charges for domestic and commercial consumers.

The two power distribution utilities of Telangana – Southern Power Distribution Company of Telangana Ltd and Northern Power Distribution Company of Telangana Ltd – have proposed an increase in the energy supply tariff to almost all categories of consumers in different forms for the 2024-25 tariff year, which commenced on April 1 this year.

New tariff proposals along with the aggregate revenue requirement (ARR) for the year 2024-25 were filed by the two Discoms before the Telangana Electricity Regulatory Commission (TGREC) late on Wednesday night by proposing the ARR at ₹57,857 crore and put the revenue generation at ₹44,835 crore, pegging the revenue gap at ₹13,022 crore seeking it from the State government in the form reimbursement/support in lieu of subsidies extended to the agriculture and a few other sectors.

The ARR and tariff proposals are generally submitted in November/December every year for the tariff year commencing on April 1 of the next year but except for a couple of years the proposals were not submitted before the ERC in most of the years since formation of the State. For the 2024-25 tariff year, the new government that assumed office on December 7 last year had sought time for the exercise.

According to sources in the Discoms, they are planning to implement the new tariff from November with the hope that the ERC would complete the public hearing process and give its nod for the new tariff next month or in November, even in case of delay as the energy charges for November are billed in December first week.

The tariff increase proposal for the domestic consumers has been sought in the form of higher fixed charges for those consuming above 300 units a month. The existing fixed charges for all sub-categories of domestic consumers is ₹10 per kilowatt load and the proposed fixed charges are ₹50 per kilowatt.

“For example, if a consumer has consumption of 405 units in a month and if his load capacity is 3 kW, the fixed charges as per the new tariff proposed will be ₹150 against the existing charges of ₹30. In case the consumption is 315 units in a month, the proposed fixed charges too will be ₹150 against the existing ₹30. In case the load capacity is 5 kW, the proposed fixed charges will be ₹250 against just ₹50 now,” a Discom official explained.

The Discom officials stated that of the ARR proposed for 2024-25 which is ₹57,857 crore, an amount of ₹42,702 crore is power purchase cost, ₹9,377 crore for distribution costs, ₹5,271 crore for inter and intra State transmission cost, ₹423 crore for interest on consumer security deposit and ₹84 for State Load Dispatch Centre (SLDC) cost.