The Hindu : Front Page : No change in power tariff for sixth year

Online edition of India's National Newspaper
Friday, Mar 23, 2007
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Front Page

No change in power tariff for sixth year

Special Correspondent

APERC issues new tariff order; railway traction rate cut by 10 paise a unit

HYDERABAD: There will not be any change in power tariff for any category of consumers for the sixth consecutive year for the 2007-08 fiscal beginning April 1.

The tariff for railway traction, however, has been reduced by 10 paise a unit (Rs. 4.20 to Rs 4.10) to encourage the railways that consumes 1,363 million units (mu) annually to lay new lines in the State.

The Electricity Regulatory Commission (ERC) here on Thursday issued a tariff order for the fiscal responding to revenue requirement reports filed by the four distribution companies, providing for continuance of free power to agriculture pump sets except in case of corporate farmers and income-tax assessees as of now. The free power beneficiaries need to pay only `consumption charges' (Rs. 20 a month) which is collected from all other categories of consumers as well.

Releasing the order at a press conference here, APERC Secretary S. Suryaprakasa Rao said March 31, 2008, would be the deadline for free power beneficiaries to fix the other two demand-side management devices--ISI-marked pumps and plastic pipes or forgo the benefit.

The ERC restricted the subsidy to be extended by the Government against free power to Rs. 1,047 crores (Rs. 1,357 crores last year), asking the companies to fill the revenue gap by improving internal efficiency and sales.

For the first time, cooperative housing societies have been allowed to take bulk supply from a single point covering all houses, as in the case of industrial colonies. But, this may burden the consumers in a disguised form by increasing consumption through a single meter which attracts higher slab rate.

Mr. Rao said they were still examining whether to pass onto the consumers the benefit of Rs. 325 crores earned by power utilities as a windfall gain following increased hydel generation during the floods of the current year.

The commission reduced the requirement of agriculture sector to 13,399 mu without conceding the discoms' plea for 16,016 mu.

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