Andhra Pradesh - Hyderabad   

Public hearing on tariff for energy projects urged

By Our Special Correspondent

HYDERABAD, MARCH 3. The State Committee of the Communist Party of India (Marxist) has demanded public hearing on the proposals on tariff policy for non-conventional energy (NCE) projects submitted to the AP Electricity Regulatory Commission by the AP Transco.

In a representation to the Commission, the State secretary of the CPI(M), B. V. Raghavulu, said public hearing was important as the AP Transco had worked out its cost of power purchase for the year 2004-05 on the basis of its proposals for revision of tariff for power of NCE projects to Rs. 2.30 per kwh on an average and, secondly, the new tariff (for NCE projects) was expected to take effect on April 1.

He said it was imperative that the tariff of power of NCE projects was fixed in a rational way, ensuring reasonable return to developers on the one hand and safeguarding consumer interest on the other.

The AP Transco, he said, admitted that the tariff being paid to NCE projects was comparatively higher than the average cost of its power purchase. It had explained in its proposals (submitted to the Commission) that it had worked out single part tariff based on the projected cost of generation for the year-on-year basis for each type of NCE project, he said. He wanted the Commission to consider fixing tariffs in "a more rational and realistic way" to safeguard the interest of consumers.

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