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The Hindu
The Hindu
Comment
V. Raghavendra

In Andhra Pradesh, another shock for industries

After enduring severe disruptions caused by the COVID-19 pandemic, the industrial sector in Andhra Pradesh is going through another rough patch as power utilities have decided to impose true-up charges and various adjustment charges on consumers. As a consequence, their monthly bills have gone up steeply in the recent past.

Energy-intensive industries are especially hit hard by fuel and power purchase cost adjustment charges, grid charges, and true-up charges. Several units have reportedly shut down their businesses due to the steep rise in the costs of production; the fall in demand, which is driven by the global recessionary trend; and now, rising power charges.

In addition to the basic (minimum demand) charges, consumers have been burdened with an increased Electricity Duty (ED). The per unit cost of power for industrial consumers is around ₹7.60 per unit, which has gone up to ₹9 per unit with the addition of true-up charges, while ED has been raised from a mere 6 paise to ₹1 per unit.

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