2 discoms seek more time to file ARR
Clear indication that the govt may increase power tariff
Confusion continues to surround power tariff proposals for 2020-21, with the two electricity distribution companies (discoms) seeking more time to file their Aggregate Revenue Requirement (ARR) with the Telangana State Electricity Regulatory Commission. The northern and southern discoms have received multiple extensions to file the ARR. February 29 was the third deadline set by TSERC for the two discoms to file their ARRs.
The filing of the ARRs forms a crucial part of the proceedings of TSERC which evaluates the financial requirements of the discoms as laid out in these documents. It may then approve the proposals for expenditure and revenue, that may include tariff changes, or reject them. The approval process includes calling for objections from the public to the ARR proposals, holding public hearings, gathering responses to the hearings from the discoms after which the commission passes orders.
THE FILING of the ARRs forms a crucial part of the proceedings of TSERC which evaluates the financial requirements of the discoms as laid out in these documents.
One of the reasons that the discoms were wary of filing their ARRs is believed to be the proposals relating to upward revision of power tariff, something that the government is believed to have held would not play out well ahead of the series of elections since November last. The repeated postponement of filing of ARRs is a clear indication that the government has approved the power tariff hike proposals but did not want such a development to affect its chances in these elections.
The first deadline for filing the ARR was November 30 last year. The discoms sought and were given an extension till December 31, but they missed it. They sought another extension and the TSERC set January 28 as the date. The discoms on Saturday asked for the third extension.
The extension was sought in view of the Budget session set to begin from March 6. While there was no word from the commission, it is learnt that the discoms have sought yet another month to file the documents.