The Hindu Business Line : Transco plans 4 pc tariff cut for HT-I industrial units

THE Transmission Corporation of Andhra Pradesh (APTransco) has sought a reduction in the tariff of HT-I industrial category by 4 per cent in its proposals for the year 2005-06. On the other hand, the power utility proposes to increase the tariff of ferro alloy units from the existing Rs 2.12 to Rs 2.87 per unit.

No change has been proposed in respect of free power for the agricultural sector and with regard to retail tariffs of all other categories including the domestic sector.

APTransco and the four power distribution companies in the State have filed the revenue requirement and tariff proposals for the next fiscal with the A. P. Electricity Regulatory Commission (APERC) here on Tuesday.

According to APTransco Director (commercial), Mr P.M.K. Gandhi, as against the existing charges of Rs 3.50 per unit for the HT-I industrial units, it has been proposed to charge Rs 3.40 per unit for the industries having demand charges of 11 KVA, Rs 3.35 per unit for industries with demand charges of 33 KVA and Rs 3.25 per unit for industries with demand charges of 220/130 KVA.

He told newspersons that, on the average, the tariff of HT-I category was proposed to be reduced by 4 per cent with a view to promote industrial growth and to provide competitive tariffs in the new environment created by Electricity Act 2003.

For 2005-06, APTransco has projected a revenue requirement of Rs 11,118 crore while its tariff proposals for the year has been estimated to be of the order of Rs 9,212 crore, leading to a revenue gap of Rs 1,906 crore. The reasons cited for the revenue gap in the ensuing year are supplemental power purchase bills and higher depreciation and interest cost due to higher capital expenditure.

Mr Gandhi said that as per the revised estimates, the revenue gap during the current fiscal had gone up by Rs 336 crore over the original estimate of Rs 1,403 crore as the revenue requirement had increased to Rs 10,400 crore from the earlier estimate of Rs 9,654 crore due to decline in hydel power generation and increase in the prices of coal and fuel. He, however, did not specify how APTransco proposed to bridge the additional revenue gap.

More Stories on : Power | Andhra Pradesh

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page