Andhra Pradesh   

No power tariff hike in A.P.

Special Correspondent

Electricity Regulatory Commission's order for 2006-07 issued

HYDERABAD: For the fifth year in a row, there will be no increase in the power tariff for domestic, commercial and other low tension categories in Andhra Pradesh while there will be a further reduction of 14 paise a unit on an average for the industries.

From April 1

This was the highlight of the tariff order for 2006-07 issued on Thursday by the Andhra Pradesh Electricity Regulatory Commission. It will come into effect on April 1 as a week's time has been given to the utilities to notify the rates to the public.

Accepting most of the proposals submitted separately by AP Transco and the four distribution companies, the APERC also reduced the rate by 20 paise a unit for railway traction and by 30 paise for ferro alloy units. For the agriculture sector, the existing tariff has been retained but with the condition that the Government has to necessarily offset the subsidy for supplying free power to marginal and small farmers.

Plea to farmers

Endorsing the Government policy, the APERC, however, asked these farmers to install frictionless foot-valves and capacitors by March 31 or forego the benefit and ISI-marked pump sets and plastic pipes by 2008.

Restrictions

They have been barred from using free power for paddy as a second crop.

The present concessional tariff for water supply, street-lighting and lift irrigation schemes will continue.

In line with the spirit of the reform-oriented Central Electricity Act, the commission prescribed transmission, State load despatch centre and wheeling charges to be collected by the Transco and the Discoms for three years.

Releasing the tariff order at a press conference, APERC Secretary S. Suryaparakasa Rao said the commission had restricted the income sought to be earned by the Discoms through tariff to Rs. 9,841 crore against Rs. 10,031 crore proposed.

The revenue gap of Rs 1,351 crore would be bridged by subsidy.

Transmission losses

These projections are subject to some conditions--reduction in transmission and distribution losses by 1.32 per cent and a good hydel generation as seen this year.

Any thermal-hydel mismatch could change the scenario drastically. AP Transco, which remains a "wire company", has proposed a revenue requirement of Rs. 2,908 crore for three years up to 2008-09, but this too has been adjusted to Rs. 1,771 crore.

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