Andhra Pradesh gets power shock

By Express News Service

31st March 2012 04:14 AM

  Electricity charges in the state have been hiked as the AP Electricity Regulatory Commission (APERC), after almost 12 years, gave its nod for a hefty rise in power tariff, both domestic and industrial. The new power tariff will be effective from April 1.
However, BPL consumers were not burdened and they would even save Rs 10 every month, provided they consume 100 units or less. Also, there is no change in power tariff for agricultural consumers.
APERC secretary MD Manohar Raju released the new tariff details to the media here on Friday.
The hike was a deviation from Congress party’s election promise that electricity charges will not be increased till 2014. The late YS Rajasekhara Reddy opposed the power tariff hike in 2000 by the then TDP government. The Congress promised no hike in power tariff when it regained power the second time in 2009.
Now, the additional burden on consumers would be around Rs 4,441 crore per year. The APERC created another category, LT 1 (A), for domestic consumers with contracted load of below 500 watts. This is aimed at helping BPL consumers who use less power.
Domestic consumers having a contracted load of 500 watts and use only 100 units per month would pay Rs 10 less under the new tariff. Tariff for the first 50 units remained unchanged at Rs 1.45 per unit.
The tariff for 51 to 100 units, which was Rs 2.80 earlier, was reduced to Rs 2.60 now under the newly created LT 1(A) category.
Thus, domestic consumers would save Rs 10 every month if they consume only 100 units. The tariff for domestic consumers was hiked up to Rs 1.50 per unit.
The minimum tariff under LT 1(A) would be Rs 1.45 for the first 50 units.
As the consumers use more power,they have to pay more.
For a usage of 500 units or more, the unit rate would be Rs 7.25 under the telescopic system. Though, the discoms proposed a total hike of Rs 4,941 crore, the APERC finally agreed to increase charges to the tune of Rs 4,441 crore.
The state government made a commitment to provide Rs 5,358.67 crore subsidy to discoms to overcome revenue deficit.