The two power distribution companies (Discoms) of Telangana have proposed increase in the retail supply tariff (RST) after a gap of five years by requesting Telangana State Electricity Regulatory Commission (TSERC) to allow them to revise energy charges by 50 paise per unit for domestic and ₹1 per unit for other consumers in low-tension (LT) category.
Further, they have also proposed an increase of ₹1 per unit for high-tension (HT) consumers of all categories. With the revision in energy supply tariffs, the power utilities plan to mop up an additional revenue of ₹6,831 crore, including ₹2,110 crore from LT consumers and ₹4,721 crore from HT consumers, compared to the existing revenue.
The mop up of revenue proposed by the Discoms — TSSPDCL and TSNPDCL — are expected to help them bridge the revenue deficit of ₹10,928 crore as projected by them in the Aggregate Revenue Requirement (ARR) reports for 2022-23 submitted before the TSERC on November 30. Chairman and Managing Director of Southern Discom G. Raghuma Reddy and CMD of Northern Discom A. Gopal Rao submitted the RSTs for 2022-23 on Monday.
Senior executives of the two power utilities stated that they have proposed increase only in the unit rate and did not make any changes in the categories both in LT and HT users. Mr. Raghuma Reddy stated that the category-wise tariffs proposed by them would be uploaded on their websites.
The Discoms have also submitted to the ERC that they would bridge the remaining revenue deficit of ₹4,097 crore by taking up internal efficiency improvement measures such as reducing line losses and plugging revenue pilferage as also seek additional support from the State government.
Both the Discoms and the ERC have indicated already that increase in the RST was inevitable this time as the tariff was revised for 2017-18 last time. The ERC observed that “in order to bridge the revenue gap/strengthen the financial position of the Discoms, there is a need to enhance the RST” when the Discoms filed their ARRs.
The Discoms have justified their proposals for tariff revision on the grounds that there was no increase in the tariff for the last five years, there was increase in the clean energy cess to ₹400 per tonne of coal from ₹50, increase in the coal cost by about ₹800 per tonne, increase in railway freight charges by 40% and increase in petrol diesel prices since the tariff was revised last.
They have also listedf increase in employee cost due to wage revision twice, and increase in the cost of finance due to strengthening of transmission and distribution network with an investment of ₹34,087 crore to ensure reliable supply.
