Financial Daily from THE HINDU group of publications
Saturday, Mar 25, 2006
Financial Daily from THE HINDU group of publications Saturday, Mar 25, 2006 |
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Industry & Economy
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Power States - Andhra Pradesh Domestic power tariff to stay in AP Our Bureau
For the first time, the order conforms to the Central Electricity Act 2003.
Hyderabad , March 24 The Andhra Pradesh State Electricity Regulatory Commission (APERC), in its tariff order for 2006-2007, has retained the same tariff for low-tension consumers, including domestic category, and brought it down for high-tension industrial users by about 14 paise per unit. To be effective from April 1, utilities will notify the new tariff proposals. Addressing a press conference here, on Thursday the APERC Secretary, Mr S. Surya Prakasa Rao, said while accepting most of the proposals made by AP Transco, the commission has reduced the rate for railways traction by 20 paise per unit and by 30 paise per unit for ferro alloys companies. For the agriculture sector, while the existing tariff structure has been retained, the Government, however, would provide the necessary subsidy for providing free power for small and marginal farmers.
Domestic users
Following this, the tariff for domestic consumers up to 50 units remains at 1.45 per unit, Rs 2.80 (up to 100 units), and Rs 5.50 per unit (above 300 units). In case of industry, the tariff ranges from Rs 2.80 per unit to Rs 4.20 per unit as against Rs 3.25-4.40 per unit. For the first time, this order conforms to the Central Electricity Act 2003 and is applicable for areas of transmission, State load despatch etc. The commission has restricted the income of distribution companies through tariff to Rs 9,841 crore as against Rs 10,031 crore proposed. The revenue gap of Rs 1,351 crore would have to be bridged by the Government subsidy. While APTransco sought Rs 2,908 crore over a three-year period, its requirement was restricted to Rs 1,771 crore.
Decision hailed
The Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI), has welcomed the reduction in industrial power tariff. Its President, Mr C.V. Atchut Rao, said the reduction for railway traction and ferro alloy units was good. In a press release, he said the gradual reduction of power tariff was a long awaited step.
More Stories on : Power | Andhra Pradesh
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