The Hindu : Andhra Pradesh News : No change in power rates for 7 categories

Online edition of India's National Newspaper
Wednesday, Mar 23, 2005

Andhra Pradesh

Andhra Pradesh

No change in power rates for 7 categories

By Our Special Correspondent

HYDERABAD, MARCH 22. Power tariff for seven categories of consumers, including those in the domestic and commercial sectors, will continue at the present rates for 2005-06 while HT industries will enjoy a 4 per cent reduction in the existing level.

Barring four changes, the Electricity Regulatory Commission issued a tariff order on Tuesday accepting in toto the proposals made by the APTransco and the four distribution companies effective from April 1. The commission approved the subsidised scheme for one-bulb households consuming below 15 units per month under which they would be required to pay Rs. 10 only.

The changes provide for tariff reduction for HT industries to Rs. 3.40 per unit from Rs. 3.50 on an average but keeping intact the demand load charges payable by them at Rs. 195 per KVA. The rate for ferro-alloy units has been enhanced to Rs. 2.87 from Rs. 2.12 per unit, which has so far been allowed at the instance of the Centre. For the Government-run lift irrigation schemes, the rate has been slashed to Rs. 2.36 per unit from Rs. 2.41.

In case of the agriculture sector, the commission endorsed the Government's free power scheme and the internal arrangements thereto. Accordingly, farmers cultivating dry lands and those having less then 2.5 acres of wet lands and using up to three pump sets need not pay anything whether or not they implement demand-side management devices like capacitors. Corporate farmers and IT assessees will have to pay Re. 1 per unit with such devices and Rs. 2 per unit without them.

The other categories whose present tariff rates are untouched are railway traction, residential colonies with HT supply, HT temporary, cottage industries, local bodies (for street-lighting and protected water schemes) and general purpose.

`Efficiency gains'

Addressing a press conference, the APERC secretary, S. Suryaprakasa Rao, its tariff Director, Geetha Gouri, and the Joint Director, M. N. Ravi Shankar, said the revenue requirement of the utilities was adjusted at Rs. 10,606 crores against Rs. 11,159 crores proposed by them. The income expected out of tariff was put at Rs. 8,882 crores but this would go up with the inclusion of Rs. 1,599 crores of Government subsidy and Rs. 125 crores out of "efficiency gains" insisted upon by the commission. The transmission & distribution losses would have to come down to 21.38 per cent from 23.61 per cent.

Mr. Rao said the APERC had accepted the total consumption for the year by all categories of consumers at 38,442 million units as compared to the current year's 34,835 MU with 14,203 mu out of this going to agriculture sector.

He put the additional burden on account of the one-bulb scheme at Rs. 20 crores. The APTransco would have surplus availability and might be in a position to sell power to other States.

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