In a significant move, the Telangana government is preparing to increase electricity charges across the state. Recent reports indicate that electricity distribution companies have submitted a proposal to the Electricity Regulatory Commission (ERC) seeking a hike in tariffs to offset their financial losses. The ERC is expected to conduct public hearings soon to evaluate these proposals and make a critical decision.
Annual Revenue Requirement Submitted for Review
The electricity distribution companies in Telangana have submitted their annual revenue requirement report for the current financial year to the state electricity regulatory board. They have proposed adjustments to charges across three categories. If the ERC approves these adjustments, the DISCOMs estimate that an additional revenue of Rs 1,200 crore could be generated to cover existing deficits.
Public Hearings to Inform Final Decision
The ERC has announced that it will make its final ruling only after conducting public hearings in at least three locations within the state regarding the proposed tariff adjustments. This process is expected to take approximately 90 days before any revised charges are implemented. The northern and southern DISCOMs have projected a combined deficit of Rs 14,222 crore for the current year and have requested the state government to cover Rs 13,022 crore of this deficit through budgetary provisions. The remaining Rs 1,200 crore shortfall will be addressed through the proposed tariff increases.
Proposed Changes for Households Exceeding 300 Units
Under the current tariff structure, households consuming over 300 units of electricity per month are charged a fixed fee of ₹10 per kilowatt. The DISCOMs have requested an increase of this fee to Rs 50. The state government provides free electricity to households consuming up to 200 units per month under the Gruha Jyoti scheme, and there is no increase in fixed charges for those using up to 299 units. With over 1.30 crore household electricity connections in the state, more than 80% of users consume less than 300 units, which the DISCOMs assert will minimize the impact of increased fixed charges on the general public.
Uniform Tariff for Industries Proposed
Currently, there are three categories of connections within the General category for High Tension (HT) industries. Industries with an 11 kV connection are charged ₹7.65 per unit, while those with a 33 kV connection are charged Rs 7.15, and 132 kV connections incur a charge of Rs 6.65 per unit. The DISCOMs have requested that a uniform rate of Rs 7.65 per unit be applied to all categories of industries moving forward. Additionally, they are seeking to raise the fixed charge for industrial consumers from Rs 475 per kilowatt to ₹500.