AP: Power tariffs hiked for all but the poorest

HYDERABAD: Power utilities on Monday pitched for a massive tariff hike that would leave only the lowest slab of power consumers untouched, and raise Rs 4,950 crore for themselves. The tariff hike will affect consumers in 10 sectors including lowtension (LT) domestic, LT commercial, LT industrial, hightension (HT) industrial, HT ferro alloys and HT commercial.After a daylong exercise on Monday, the discoms filed their annual revenue requirement (ARR) and tariff proposals for financial year 201213 before the AP Electricity Regulatory Commission (APERC) after approval by chief minister Kiran Kumar Reddy. The power regulator will issue a tariff order effective from April 1, 2012.
The discoms estimated an energy requirement for next year at 93,913 million units (MUs). Availability from approved power stations is likely to be around 81,464 MU. This would leave a deficit of 12,449 MUs. To bridge the deficit, the discoms intend to make medium and shortterm purchases.The power establishment's annual revenue requirement is around Rs 35,062 crore but projected revenue from current tariffs is likely to add up to only Rs 24,009 crore. That would leave a gap of Rs 11,053 crore, which the government would either have to subsidise or allow the discoms to raise tariffs. Exercising the latter, option, the discoms propose to realise additional revenue of Rs 4,950 crore through a hike in tariffs. This will bring down the revenue deficit to Rs 6,103 crore.