Date:01/12/2006 URL: http://www.thehindu.com/2006/12/01/stories/2006120103960600.htm

Andhra Pradesh

No hike in power tariff next year in A.P.

Special Correspondent

Free power supply for agriculture pumpsets to continue

HYDERABAD: For the fourth consecutive year, there will not be any hike in power tariff rates for any category of consumers during the 2007-08 fiscal.

The APTransco and the four distribution companies filed their Annual Revenue Requirement (ARR) reports for 2007-08 before the Andhra Pradesh Electricity Regulatory Commission without proposing any increase in tariff rates.

Also, free power supply for agriculture pumpsets in case of small farmers and concessional tariff for industries will continue. Any distribution company can prefer separate tariff structure for its consumers depending on its balance sheet under the Electricity Act 2003, but they have avoided differential rates in tune with the Government's policy to have uniform rates all over the State.

The Commission will organise public hearings on the ARRs and issue tariff order for the fiscal accepting the ARRs in toto or suggesting changes. The order will come into force from April 1, 2007.

APTransco claimed that it could maintain status quo on tariffs due to "improvement in internal efficiency". A senior official said the tariff in real terms, indeed, had come down when adjusted against inflation. It remained constant at Rs 2.35 per unit on an average for domestic consumers implying a 17.5 per cent reduction, he reasoned.

For 2007-08, APTransco proposes to reduce transmission & distribution losses by 1.52 per cent and get an additional revenue of Rs 188 crores. Discoms propose to increase their metered sales by 10.5 per cent and earn additional income of Rs 131 crores.