APERC Chairman Nagarjuna Reddy said: “To maintain uniform tariffs for domestic consumers, Discoms have estimated 52,590.70 crores as their aggregate revenue requirement (ARR) for the financial year 2023–24. But APERC has reduced it to 49,267.60 crore. The commission, for the first time, assessed the demand and availability of generation time-of-day wise to realistically arrive at shortages and surplus scenarios of power during the financial year 2023–24. The commission is strictly implementing Regulation 1 of 2022 in regulating short-term power purchases being made by Discoms.
No hike in tariff of power supplied to domestic consumers, while the state government will pay 10,135.22 crores for supplying free power to farmers and subsidised power to SCs, STs, MBCs and aqua farmers, APERC (Andhra Pradesh Electricity Regulatory Commission) chairman C.V. Nagarjuna Reddy has announced.
1. Aggregate Revenue Requirement (ARR) (Crores) for FY 2023-24 filed by the DISCOMS and Determined by the APERC: DISCOM Filed by the DISCOMS APERC Determined Diff. (A) (B) (A)-(B) SPDCL 20870.78 19457.42 1413.36 CPDCL 12140.92 11425.55 715.37 EPDCL 19579 18384.39 1194.61 Total for Three DISCOMS 52590.7 49267.36 3323.34 Reasons for difference: The Commission’s determination on sales, T&D Losses, Power Purchase requirements, and Power Purchase costs are less than DISCOMS’ Estimations. 2. The Commission for the first time assessed the demand and availabilities of generation Time of Day (ToD) wise to realistically arrive at the shortages and surplus scenario of power during FY 2023-24 since consideration of the availability of generation at normative value is not reflecting the reality with respect to market purchases by the DISCOMS. The Commission is strictly implementing Regulation 1 of 2022 in regulating the short-term power purchases being made by DISCOMS.
Page 1 of 5 3. Revenue Gap (Crores) for FY 2023-24 estimated by the DISCOMS and Determined by the APERC: S.No. Item SPDCL CPDCL EPDCL For three DISCOMs 1 Revenue gap filed by the DISCOMS after accounting the concessions to be extended to various sections as per GoAP's Orders 6929.77 3332.024 3766.97 14028.764 2 Revenue gap determined by the APERC 5196 2453.35 2485.87 10135.22 3 Difference (1)-(2) 1733.8 878.7 1281.1 3893.5 ***As per filings 6455.63 3040.76 3294.07 12790.46
The Government of Andhra Pradesh has agreed to bridge the total revenue gap determined by the APERC Rs.10135.22 Crores for FY 2023-24 as a subsidy under section 65 of the Electricity Act,2003. The above subsidy covers: ● 9 hours of free power supply to eligible farmers ● The concessions extended to various classes of consumers like SC, ST, MBC, and Aqua farmers. ● To maintain uniform tariffs for domestic consumers (The subsidy is provided to domestic consumers of APSPDCL & APCPDCL). 4. Since the total Revenue Gap determined by APERC has been bridged by the government for FY 2023-24, there is no tariff hike to any category/class of consumers except for Energy Intensive Industries. Page 2 of 5 5. Hitherto the tariffs for the Energy Intensive industries are much lower than the Average Cost of Supply of DISCOMS, the DISCOMS have proposed tariff hikes for these industries. Their Tariff Proposals are ● Demand Charges to Energy Intensive Industry on par with HT Industry General i.e., Rs.475 per KVA per month as against NIL demand charges now. ● The ToD Charges to the Energy Intensive category on par with HT Industry General (ToD tariffs are not applicable to these industries at present). ● The Guaranteed Consumption @ 85% Load Factor, a fresh condition The Commission after examining the above proposal, the views/objections/suggestions from various stakeholders and including some political party representatives, comparing the tariffs in other States, etc, has introduced demand charges of Rs.475 per kVA per month on par with HT industry General. The other two proposals of the DISCOMS are denied by APERC. 6. The APERC also granted some tariff relief to some classes of consumers: ●
Exempted kVAH billing to power looms consumers and flour mills up to 10 HP based on the mass representations on this issue and practical difficulties being faced by them. ● The option to exercise off-season has been changed to two times a year from once a year. 7. If there is any issue with solar power, the eligible farmers provided with solar pump sets, the DISCOMS shall extend the free power to them as per govt. policy. Page 3 of 5 8. The DISCOMS shall strictly comply with the net metering guidelines approved by APERC vide its Order dated 25.05.2019 on solar rooftop policy in respect of the installation of solar rooftop power plants. 9. Regarding the improper alignment of the items in the electricity bills and their visibility, etc., the DISCOMS are directed to submit the Commission compliance report within 30 days of the release of this Order. 10.With regard to the promotion of EC & EE measures,
The Commission has approved by proceedings dated 09.11.2022 a pilot project for the sale of energy-efficient appliances such as LED tube lights, BLDC ceiling fans, and super-efficient ACs to domestic consumers to be implemented by APSEEDCO. Based on the response to the pilot project, the Commission would direct the initiation of further steps. 11.Regarding the release of the agricultural connections under the free power category, the Commission has issued the practice directions by proceedings dated 23.03.2021, and the same is placed on the website of the Commission. If the services are not released in accordance with the above directions, the aggrieved consumer may bring the same to the notice of the Commission for taking appropriate action against the concerned. Page 4 of 5 12.Regarding ensuring the 9 hours supply to agricultural consumers, the DISCOMS are directed to place the reports or minutes of the District Committees ( to review the quality of power supply and consumer satisfaction ) constituted under section 166 (5) of the Electricity Act, 2003 on their websites and submit the same to the Commission.
Leave Comments