Power cost set to go up

Discoms plan to shrink slabs for getting more income

Telangana Power Distribution Companies (TSSPDCL and TSNPDCL) are planning to recover their revenue losses by increasing power tariff slabs, which will automatically hike power cost for heavy users.

According to official sources, the distribution companies, which are also called discoms, could bring down the annual slab limit from existing 900 units to 600 units.

However, it remains to be seen whether the increased charges will be applicable from February or March though there are indications that the government may allow the new tariff structure from the new financial year (201718) starting April 1.

This would mean that those using above 600 units per year would be placed in next higher slab and a power tariff of `2.45 per unit will be collected from them as against `1.45 at present. It is estimated that this move would increase the burden on 3.5 lakh consumers and reduce the power subsidy for a large chuck of the poor.

The discoms had adopted a similar policy during the last financial year when they placed consumers in the next higher category, those who used over 900 units.

For instance, a consumer will have to pay a bill of `72.5 per month, if he used 600 units per year at the rate of `1.45 per unit at present.

If he used even one unit more than 600 units, he would be placed in next higher slab, where he will be charged `2.45 per unit of power. This will increase his monthly power bill from `72.5 to `122.50.

The companies are working out tariff hike proposals, which will be submitted to the TS Electricity Regulatory Commission before January 31.

Though the original deadline to submit the hike proposals had ended on December 31, the discoms sought some more time in the wake of the Telangana government’s decision to join the Central government’s UDAY scheme to make discoms ‘debt-free’. The MoU to this effect was signed with the Centre on January 4.

Since the government took over the total debt burden of discoms amounting to `11,897 crore under the UDAY scheme, it is not in a position to bear any more subsidy burden. Because of this, the discoms are planning to recover future revenue losses from the consumers.

The discoms also need more money as they have been buying power from private producers across the country to provide 24x7 power supply to domestic and industrial sectors and nine-hourlong free power to the agriculture sector. They are suffering losses as they are spending as high as `5.25 per unit to purchase the power.

DISCOMS COULD bring down the annual slab limit from existing 900 units to 600 units.

THIS MOVE would increase the burden on 3.5 lakh consumers and reduce the power subsidy for the poor.