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The Hindu
The Hindu
National
V. Raghavendra

Andhra Pradesh power utilities decide against increasing tariffs despite a revenue gap of ₹13,879 crore

The AP-Transco and distribution companies (Discoms) have pegged their total Aggregate Revenue Requirement (ARR) for the FY 2024-25 at approximately ₹56,576 crore and the revenue gap at current tariffs at ₹13,879 crore, which is higher than the previous year’s ₹11,800 crore.

However, they have not proposed a tariff increase for any category in their ARR and  the Proposed Retail Supply Tariff (PRST) filings with the AP Electricity Regulatory Commission (APERC), according to an official release.

The total revenue and non-tariff and other income has been quantified to be roughly ₹42,698 crore. The power purchase cost is estimated to be ₹39,017 crore, and the transmission and load dispatch cost ₹5,723 crore, while the distribution network cost is expected to be ₹9,515 crore.

It is stated that the total revenue realisation pertains to the recovery of revenue and charges from all the categories of consumers, except the farmers drawing free power, for which reimbursement will continue to be given.

The release further says the revenue gap will be bridged as per the recommendations of the APERC, and the financial burden thereof will not be imposed on the consumers as it has been decided not to increase tariffs.

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