The Telangana power distribution companies propose power tariff hike

The Telangana power distribution companies (discoms) proposed for a hike in power tariff hike by 50 paise per unit for domestic consumption and Rs 1 per unit for all the remaining sectors. They submitted the Aggregate Revenue Requirement (ARR) and Retail Supply Tariff to the Telangana State Electricity Regulatory Commission (TSERC) for the fiscal 2022-23.

Accordingly, the hike in power tariff for low-tension (LT) consumers is expected to generate an additional revenue of Rs 2,110 crore and hike for high-tension (HT) consumers is expected to additional revenue of Rs 4,721 crore. However, the benefits being extended by the State government to the agriculture sector, SC and ST domestic consumers, hair salons and laundries as well as concession of Rs 2 per unit to power looms, poultry farms, spinning mills and others, will continue.

About 25.78 lakh



consumers are benefiting from the free and uninterrupted power supply to agriculture sector. Similarly, free power supply will be provided to SC and ST domestic consumers upto 101 units per month as well as 250 units per month to salons run by the members of Nayi Brahmin community and laundries run by washermen (Rajaka) community.

The tariff hike appears to be inevitable as there has been no tariff revision in the State for the last five years. The two waves of Covid pandemic also had severe impact on the finances of the discoms. Further, the Centre’s policies also led to the increase in the power generation and transmission costs which includes increase in clean energy cess from Rs 50 per tonnes to Rs 400 per tonne, increased coal cost by about Rs 800 per tonne, increased railway freight charges by 40 per cent in the last four years and also increased petrol and diesel prices.