Amaravati: The Andhra Pradesh Electricity Regulatory Commission (ERC) on Wednesday issued the Retail Tariff Order for 2022-23, taxing the domestic power consumers rather heavily while sparing other sectors from the hike.
Overall, according to the ERC, the power tariff hike would impact over 170 lakh consumers, "benefiting 20.76 lakh consumers from any kind of tariff hike." The tariff hike ranges from 45 paise to Rs 1.57 per unit in six different slabs only for domestic consumption. The power tariff hike triggered protests by opposition parties in the state, which demanded an immediate rollback.
The ERC called it "rationalization of the tariff structure" by merging all three existing groups in the domestic category into one group under a telescopic billing system. It said the three state-owned power distribution companies (Discoms) would be left with a deficit of Rs 10,045.61 crore even after enhancing tariffs for domestic users. Consequent to the hike that would come into effect from April 1, 2022, the Discoms would net additional revenue of Rs 1,400 crore, the ERC said.
The three Discoms projected an aggregate revenue requirement of Rs 45,398.66 crore for the 2022-23 financial year. The state government agreed to extend a subsidy of Rs 11,123.21 crore to the Discoms, with Rs 9,513 crore of it going towards free power to the agriculture sector alone. "The Discoms are in a dire financial situation with their combined losses standing at a whopping Rs 28,000 crore.
The Commission has come to the conclusion that the Discoms are no longer in a position to sustain their operations unless the tariffs for retail supply are increased," ERC Chairman Justice (Retd.) C V Nagarjuna Reddy said. The Commission, he added, has examined the possibility of increasing tariff for other categories of consumers (like industrial and commercial) "by sparing the poor and middle-class domestic consumers." "These categories of consumers (industrial and commercial) are already saddled with high tariffs. Any further increase is highly unsustainable for them," Justice Nagarjuna Reddy noted.
He pointed out that there has been no increase in the domestic power tariff in the 0-50 units slab in the last two decades. Even in other slabs, the tariffs were last revised in the year 2013-14. The enhanced tariffs were "relatively at a reasonable level" compared to many other states, he added.
Decrying the power tariff hike for domestic consumers, the main opposition Telugu Desam Party came down heavily on Chief Minister YS Jagan Mohan Reddy for ditching the people yet again by going back on his promise. "Jagan does the reverse of whatever he promises. By abnormally increasing the power tariff, Jagan gave a massive shock to people," TDP general secretary and MLC Nara Lokesh lashed out.
Lokesh posted a video clip on Twitter of Jagan Mohan Reddy's remarks on power tariff, when he was the leader of the opposition, to expose how the latter "cheated" the people upon becoming Chief Minister. He demanded that the tariff hike be rescinded forthwith. Jana Sena political affairs committee chairman Nadendla Manohar said by voting for 'fan' (YSRC's election symbol), people were now sadly left in a position where they could not even run a fan in their homes.
"In the name of welfare, the Jagan regime has pushed AP into darkness. The power tariff hike will be an unbearable burden on the common people," Manohar told reporters in Rajamahendravaram. The former Speaker pointed out that unofficial power cuts had become the order of the day across the state for the past six months.
The Jana Sena would agitate along with people till the tariff hike was withdrawn, Manohar said. State Congress president Sake Sailajanath, CPI state secretary K Ramakrishna, CPM leader Ch Babu Rao, and other opposition leaders also denounced the power tariff increase and demanded its immediate rollback.
Also read: Stick to Power Purchase Agreements, HC tells Andhra Pradesh power discoms
