Telangana hikes power tariff by 4.4%

V. Rishi Kumar Hyderabad | Updated on March 27, 2015 Published on March 27, 2015

Spares consumers below 200 units/month

The Telangana State Electricity Regulatory Commission in its power tariff order for 2015-16 has hiked the overall tariff by 4.42 per cent, while sparing 80 lakh domestic consumers consuming up to 200 units per month.

In its tariff order announced today, the commission announced that while the overall hike works out to 4.42 per cent, the average increase in tariff works out to 1.3 per cent for the entire domestic category.

Ismail Ali Khan, Chairman of Telangana State Electricity Regulatory Commission, in its maiden order after the new State has been created, said that the Telangana Government has agreed to provide a subsidy of Rs 4,227 crore resulting in additional revenue of Rs 816 crore from new tariff.

In the tariff order, the regulator has not brought about any tariff hike for power consumers consuming up to 200 units per month, agriculture and cottage industries (18 lakh consumers), and small non-domestic consumers consuming less than 50 units (around 6 lakh consumers).

For domestic consumers, in the 401-500 units and above 500 units, they have been merged into a single slab of consumption above 400 units. The State has 1.2 crore consumers.

The annual revenue approved works out to Rs 23,416 crore and the revenue at approved tariff is Rs 19,189 crore, with a subsidy of Rs 4227 crore, leaving a gap of Rs 816 crore.

The power tariff for industrial consumers varies depending on the capacity and also usage.

According to the sharing formula, the Telangana State has to get power from Krishnapatnam and Hinduja projects. If this is not supplied, the State would have to bear additional burden of Rs 300 crore.

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Published on March 27, 2015
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