The Hindu Business Line : Hyderabad water supply board seeks reduction in power tariff

THE Hyderabad Metropolitan Water Supply and Sewerage Board (HMWSSB) has appealed to the AP Electricity Regulatory Commission (APERC) to ensure that power is supplied to it at Rs 1.20 per unit and not at Rs 3.95 per unit as proposed by the State power utilities.

At a public hearing by APERC here on Tuesday on power tariff proposals by the Transmission Corporation of AP (APTransco) for 2005-06, the Managing Director of HMWSSB, Mr B.P. Acharya, stated that power for supply of drinking water to the people should be provided at 50 per cent of the tariff proposed for lift irrigation projects.

Pointing out that power was being provided at concessional rates for supply of drinking water in Karnataka, Himachal Pradesh and Jammu and Kashmir, Mr Acharya wanted similar concession to be extended to the board. The subsidised amount, if power was supplied at Rs 1.20 per unit, would account for Rs 60 crore per annum.

He made a strong plea for subsidised power supply stating that with water levels dwindling at the Osmansagar, Himayatsagar and Singur reservoirs, the three main sources of water supply to the State capital, the board had to increasingly depend upon the power-intensive Krishna drinking water supply scheme. Consequently, the cost of power consumption by HMWSSB had been estimated to be over Rs 320 crore in 2005-06 as against Rs 248 crore in 2004-05.

The representative of the South Central Railway (SCR) had also made a strong plea for reduction in power tariff on the electricity supplied to railway traction from the proposed Rs 4.40 per unit to Rs 2.31 per unit.

The Deputy Chief Electrical Engineer of SCR, Mr R.P. Prajapati, said high power tariff was affecting implantation of new electric traction projects, as the rate of return would be low. Besides, rail traction was power intensive and hence should be treated on par with other power intensive units like ferro alloys for which power was supplied at a concessional rate.

The representatives of the grape growers' associations argued that horticulture should not be separated from agriculture as far as provision of free power to farmers was concerned.

The Convenor of People's Monitoring Group on Electricity Regulation, Dr M. Thimma Reddy, wanted the APERC to direct the licensees to take effective steps to reduce transmission and distribution (T&D) losses and collect all arrears.

On the other hand, Mr D.K. Panwar, Principal Secretary, Energy, said utilities have been successful in reducing T&D losses from 36.91 per cent in 2000 to about 24.11 per cent in 2004. He assured that the State Government was committed to providing the necessary financial assistance needed by the power sector.

The Chairman and Managing Director of Central Power Distribution of AP Ltd, Mr Heeralal Samariya, said that the power utility was facing financial difficulties and wanted the APERC to allow its annual revenue requirement as filed by it.

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