The Hindu Business Line : APERC reduces industrial tariff

THE Andhra Pradesh Electricity Regulatory Commission (APERC) has reduced the energy charges for industrial units in its tariff order for 2005-06. There is no change in tariffs for domestic, cottage industries, local bodies, general purpose and railway traction.

As per the tariff order issued on Tuesday, the energy charges for industrial consumers using 132 KV and above will be Rs 3.25 per unit as against the existing Rs 3.50. Similarly, the tariff rates of 33 KV industries will be Rs 3.35 per unit (existing Rs 3.50) and 11 KV industries will be Rs 3.40 per unit (Rs 3.50). There is also a reduction in the wheeling charges of distribution companies by one to two paise per kWh.

The commission also changed the incentive structure, the discount applicable on the energy rates, for industrial consumers. Incentives will be now based on load factor only. Accordingly, a 5 per cent discount is applicable on the energy rates if the load factor is 30 per cent to 50 per cent, 10 per cent incentive if the load factor is 50 per cent to 60 per cent, 15 per cent if the load factor is 60 per cent to 70 per cent and 20 per cent incentive is applicable if the load factor is above 70 per cent.

Releasing the tariff order at a press conference, the APERC Secretary, Mr Suryaprakasa Rao, said that tariffs for the industry was reduced keeping in mind the need to spur industrial growth in the State. The tariffs for Government lift irrigation schemes have also been reduced from Rs 2.41 to Rs 2.36 per unit to keep in line with the concept of cost-to-serve.

Mr Rao said that the net revenue requirement of the Transmission Corporation of AP (APTransco) and the four distribution companies (Discoms) during next fiscal stood at Rs 10,606.90 crore.

The commission directed the Discoms to achieve efficiency gains of Rs 125 crore. The State Government had committed to give a subsidy amount of Rs 1599.48 crore. The retail tariff rates were fixed after taking into account the subsidy amount.

He said that the fuel surcharge adjustment (FSA) would be applicable as notified by the commission from time to time. Farmers eligible for free power supply, have to comply with the demand side management measures specified in the Government's new agricultural power supply policy. The number of single-bulb consumers, for whom power should be supplied free of cost, were yet to be estimated by Discoms.

The commission had limited the transmission losses to 5 per cent next fiscal as against 6.25 per cent in the current year. The distribution losses had also been limited to 17.24 per cent as against 18.52 per cent in 2004-05. Hence, the overall systems losses were expected to decline from the current 23.61 per cent to 21.38 per cent next year.

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