APERC plumps for six tariff slabs

By Our Special Correspondent

HYDERABAD, MARCH 24. The Andhra Pradesh Electricity Regulatory Commission tonight issued power tariff order for the year 2001- 2002 effective from April 1, introducing six slabs in the domestic sector, keeping up the promise made by the Government, and retaining, by and large, the existing rates for other categories of consumers.

The Commission accepted in toto the slabs and the rates suggested by the AP Transco in its proposals to net the yearly revenue of Rs. 6,274.49 crores but effected minor changes for agriculture consumers without placing additional burden on them.

The order reduced the tariff by about 5 per cent for the first two slabs in the domestic sector, introduced a middle-level slab of 50-100 units, and slightly increased the rates for the last two brackets by about as much percentage which cumulatively implied that the extra burden on users was almost nil.

The slabs coming into force from the new financial year with their corresponding rates in brackets are: 0-50 units per month (Rs. 1.35 per unit); 51-100 units (Rs. 2.60), 101-200 units (Rs. 2.85 ), 201-300 units (Rs. 4.50 ), 301-400 units (Rs. 5 ) and 400 units and above (Rs. 5.75 per unit).

The existing four slabs replaced by these are 1-50 units, 50-200 units, 200- 400 units, and 400 units and above. The present telescopic system of billing would continue.

The APERC gave a shock treatment to the Transco by admitting only Rs. 8,285 crores out of Rs. 8,828 crores of annual revenue projected - a reduction of Rs. 543 crores (of which Rs. 264 crores would have been towards power purchases and Rs. 267 crores for interest payments on working capital).

Also, the net deficit for the year was reduced to Rs. 2,062 crores from Rs. 2,512 crores proposed by the Transco, but Rs. 501 crores as the efficiency gains was accepted. Thus, the Government's subsidy burden which would have touched at least Rs. 1,700 crores, stands reduced to Rs. 1,561 crores.

The Commission retained the present flat rates for agriculture pumpsets working out to 35 paise per unit, leaving the option to switch over to metered tariff.

The order, which was released by the APERC Secretary, Mr N. B. Narasimha Rao, at a press conference at the end of daylong deliberations among the Chairman, Mr G. P. Rao, and the two members, Mr A. V. Subba Rao, and Mr D. Laksminarayana, said, this would greatly benefit those drawing supply for about 1,200 hours in a year.

The order brought sugarcane crushing units under LT III (A) category, considering the units as non-agriculture activity. Aquaculture units have also been placed in the same category. The new structure prescribed LT demand meters for Category III (A) for contracted demand from 20 to 50 HP and HT meters for load from 50 to 75 HP.

This was done keeping in view representations made by consumer organisations at public hearings.

However, the Commission decided to continue the existing wheeling charges in their present shape till a review and revision was made in ``due course''.

For consumption by industries in the HT I category, an incentive system was introduced for increased consumption relative to previous 12 months.

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