The Hindu Business Line : AP to waive surcharge for defaulting power users

The State Government has petitioned the AP Electricity Regulatory Commission to reduce the surcharge from April 1, 2006, when the new tariff structure will come into effect.

Hyderabad , Dec.19

THE State Government on Monday announced waiver of power surcharge arrears accumulated over the current consumption bills for the past four years.

This would mean a relief of Rs 179 crore to low-end power consumers in the State. This is being offered as a one-time benefit for all the defaulting consumers whose monthly consumption is below 100 units, but subject to condition that the principal amount is paid by them in instalments in January, February and March 2006. Once paid, the service will be reconnected.

Addressing a press conference here on Monday, the State Energy Minister, Mohd. Shabir Ali, said that the State has 1.3 crore domestic sector consumers and the waiver touches some 46 lakh out of 97 lakh consumers in this category. It is estimated that the dues have piled up to Rs 494 crore.

The State Government has petitioned the AP Electricity Regulatory Commission to reduce the surcharge from April 1, 2006, when the new tariff structure will come into effect. This is based on representations made by various categories of power consumers.

The Government has decided to waive the surcharge arrears burden on the defaulting consumers since this had gone up by about 100 per cent in four years. Alongside, the free supply to one bulb household would continue. This meant Rs 1.39 crore per month and the Government has paid Rs 9.74 crore to AP Transco for the period up to October 2005.

The AP Transco and four distribution companies had submitted the proposals for surcharge waiver in November.

The State Minister reiterated that the agriculture pumpsets would get power sufficient to manage their rabi crop even if this meant going beyond the seven-hour supply announced earlier. The Chief Minister was examining the possibility of extending free power to farmers who cultivate paddy too. Earlier, the Government had made it clear that farmers who take to non-paddy crops only would be provided free power.