A cross-section of stakeholders have strongly opposed the hike of ₹6,831 crore in retail supply tariff proposed by the two power distribution companies (Discoms) in the State for 2022-23 and blamed the State government for the present status of the two utilities being in huge operational losses.
A public hearing, last of the four scheduled by the Telangana State Electricity Regulatory Commission (TSERC), was held here on Friday with Chairman of the regulator T. Sriranga Rao chairing the event attended by two other members of the Commission and officials of Southern Power Distribution Company of Telangana Ltd (TSSPDCL) led by its Chairman and Managing Director G. Raghuma Reddy besides a cross-section representing all categories of consumers and different organisations.
Leading the stakeholders opposing the proposed tariff hike, Telangana Pradesh Congress Committee (TPCC) president A. Revanth Reddy said the losses of two Discoms had come down to about ₹2,000 crore as of September 30, 2015 after they joined Ujjwal Discom Assurance Yojana (UDAY) scheme in January 2017. However, the State government’s inability to refund the Discoms completely against the subsidies being extended to different sections of consumers by the government had shot up their cumulative losses (debt) to about ₹60,000 crore now, he alleged.
He requested the Commission to attach the properties of the State government since it had become a major defaulter of the two Discoms with nearly ₹10,000 crore amount due to be paid to the utilities till December-end 2021 and also evading huge subsidy. As against the requirement of about ₹16,000 crore subsidy, the government had made a budgetary provision of less than ₹6,000 crore a year, he pointed out.
Further, he alleged that the aggregate tariff hike of 18% proposed by the Discoms directly would burden people by over ₹6,830 crore but coupled with indirect hike in the form of various charges and taxes the total burden would go beyond ₹10,000 crore, he stated. In spite of all tall claims by the State government of Telangana being at the top in power sector, the Southern Discom was in 23 rd position and Northern Discom was in 33 rd position out of a total of 41 Discoms in the country.
Convenor of the Centre for Power Studies M. Venugopala Rao said although the Discoms have proposed a hike of ₹0.50 per unit to low-tension (LT) and ₹1 per unit to high-tension (HT) consumers besides hike proposed in fixed, consumer and minimum charges but they have failed to justify the hike. He also objected to the Discoms argument that enhancement of fixed charges was intended to provide relief to Discoms from incurring loss and sought to know why the same logic was not being applied for LT agriculture category.
He requested the Commission to work out full cost tariff for LT agriculture category and direct the Discoms to get entire subsidy amount for 24×7 free power being provided to the category.
Representatives several industry and trade bodies, chambers of commerce, non-governmental organisations, people’s organisations and individuals have also opposed the tariff hike. The Southern Indian Cement Manufacturers’ Association has argued that instead of hike, the tariff could be reduced.
