The Hindu Business Line : APTransco lines up steps to prevent tariff hike

THE Transmission Corporation of AP (APTransco) and distribution companies have prepared a three-tier strategy to ensure no further tariff hike notwithstanding rise in inflation rate and steep hike in fuel cost.

The strategy aims at reducing power purchase cost by following "merit order dispatch" to facilitate purchase of cheaper power.

It also envisages sale of power to other States and utilities during surplus period and reduce transmission and distribution losses.

In an open letter to 1.55 crore power consumers in the State, Ms Rachel Chatterjee, Chairperson and Managing Director of APTransco, said that the utility was committed to meeting the energy requirements of the consumers.

"At the same we will aim at minimising the financial burden on the consumers by taking up efficiency improvement measures," she said.

On the three-tier plan, she said that the power purchase cost per unit (excluding the operational and maintenance costs) during the current year would be Rs 1.73 against Rs 1.81 in 2003-04.

The plan would shortly be submitted to the State Government, a release said on Sunday.

This resulted in savings to tune of Rs 230 crore on purchase of 46,000 million units (MU).

Good inflows into reservoirs promised improvement in hydel power generation.

"The power utilities are expecting hydel power generation of about 14 per cent against six per cent last year.

In the first half of this fiscal, hydel power generation stood at 2,483 MU against 690 MU in the same period last year," she said.

The plan also factors in sale of surplus power.

"This year, tariff order provides for sale of 1,114 MU in the time of surplus. Proceeds would help to minimise the burden of the consumers back home," the release said.

With regard to transmission and distribution (T&D) losses, the utility framed guidelines to reduce the losses to 20.47 per cent this year against 23.83 per cent in 2003-04.

"This will result in savings of Rs 300 crore," Ms Chatterjee said.

In order to the strengthen the T&D network, Transco and distribution companies have decided to spend Rs 1,436 crore this year, she said in the open letter.

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