Home NEWS ERC rejects most tariff increase proposals of Discoms, provides relief to consumers

ERC rejects most tariff increase proposals of Discoms, provides relief to consumers

ERC rejects most tariff increase proposals of Discoms, provides relief to consumers

ERC rejects most tariff increase proposals of Discoms, provides relief to consumers

Telangana Electricity Regulatory Commission has removed fixed charges for EV charging stations.
| Photo Credit: NAGARA GOPAL

HYDERABAD

Electricity consumers, particularly those of the domestic category, in the State, can heave a sigh of relief with the Telangana Electricity Regulatory Commission (TERC) rejecting most of the tariff increase proposals made by the two power distribution companies (Discoms) in the form of fixed charges.

The regulatory body, however, partly considered tariff hike proposals of the Discoms for the non-domestic categories, mostly in the form of fixed charges. Except for the lift irrigation (LI) schemes, the Commission has also retained the existing tariff.

In a move to help the Discoms retain the non-domestic consumers seeking open access during the non-peak (10 p.m. to 6 a.m.) hours, the Commission has increased the tariff concession as part of the Time of Day (ToD) charges from the existing ₹1 per unit to ₹1.5 per unit.

Net gap in revenue

“Overall, the Commission has approved net gap in revenue with the approved tariff at ₹4,015.06 crore for Southern Power Distribution Company of Telangana Ltd (TGSPDCL); ₹7,141.35 crore for Northern Discom (TGNPDCL) and ₹343.11 crore for Cooperative Electricity Supply Society (CESS) Sircilla, all of it totalling to ₹11,499.52 crore,” Commission Chairman T. Sriranga Rao said on Monday.

Announcing the retail supply tariff for 2024-25 with prospective effect (for five months from November) and seven other multi-year tariff proposals of Genco, Transco, SLDC and wheeling business till 2028-29 along with and Members M.D. Manohar Raju (Technical) and B. Krishnaiah (Finance), Mr. Sriranga Rao said the direct subsidy given by the government to various sectors would be ₹11,499.52 crore. The State government has proposed ₹16,398.16 crore support to power utilities in the budget for 2024-25.

Going into the details, Mr. Rao said the two Discoms had sought an aggregate revenue requirement of ₹57,728.90 crore but the Commission had approved for ₹54,183.28 crore and their approved revenue deficit would be ₹11,156.40, with the approved tariff, for the remaining five months of the fiscal. He stated that the overall reduction in tariff was ₹0.47 per unit, all categories put together including fixed and other charges, compared to the existing tariff.

Approved tariff

As per the approved tariff for 2024-25 (for 5 months), there would be no change in tariff for LT-I (A) domestic category with the further relief of removal of minimum monthly energy charge. For those consuming above 800 units a month, the fixed charges would be ₹50 per kVA from the existing ₹10. For LT-II (B) non-domestic (commercial) category fixed charges would be reduced to ₹30 per kW from ₹60 per kW for consumption up to 50 unit and monthly minimum energy charges would reduced to ₹50 from ₹65 for single-phase connection and to ₹100 from ₹200 for three-phase connection.

What’s in the new power tariff order
For LT-III industry category the limit of connected load from mushroom production units, rabbit farms is increased to 25 HP from 10 HP
For cottage industries (LT-IV), minimum amount of ₹30 per month is removed
Upper limit of connected load for apiculture, chaff cutting, millet processing, emu bird farming is increased to 20 HP from 10 HP
For LT-V agriculture category, the limit of connected load for horticulture nurseries is increased to 20 HP from 15 HP
To promote electric vehicles, fixed charges for EV charging stations (LT-IX) are removed completely from the existing ₹50 per kW
Fixed charges for poultry farms, industrial colonies, seasonal industries, ferro alloy units in HT-I, others (HT-II) is increased from ₹475 per kVA per month to ₹500
Fixed monthly charges for airports, bus stations, railway stations, irrigation, drinking water scheme, railway traction, HMR traction is increased from ₹475 per kVA to ₹500
Fixed monthly charges for religious places, townships and residential colonies increased to ₹285 from ₹260, for LI schemes it has been increased to ₹300 from ₹275

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