Electricity Regulatory Commission Dismisses Discoms’ Proposal for Increased Fixed Charges

Hyderabad: The Telangana State Electricity Regulatory Commission has rejected the proposal to hike electricity tariffs in Telangana. Discoms had proposed to increase fixed charges by 10 to 50 per cent if consumption exceeds 800 units a month.

After a long discussion, the ERC rejected the proposal of Discoms, the commission said   at a media conference. The ERC completed its investigation regarding these proposals. In this background, the Discoms submitted their latest report to the ERC with details of the power charges in other states.

However, the ERC rejected the proposal to hike charges. Questions have arisen on how the Electricity Regulatory Commission (ERC) managed to address the eight MY (Multi-Year) petitions in just 40 days, according to ERC Chairman Sriranga Rao.

Delays by power companies in filing these petitions resulted in penalties, and open hearings were held this month to gather suggestions, which have been duly noted, he said. “Our term is ending today , and recently we inaugurated the Electricity Regulatory Bhavan,” stated Chairman Rao.

“In just 40 days, the Commission reviewed all the eight petitions and aimed to ensure that our decisions do not burden the public while considering the subsidies provided by the government,” he said. Regarding Discoms, Rs 25,000 crore should be given by the government to the ERC, Chairman Sriranga Rao said. “There were discussions about that.

We have submitted our suggestions in order to get payment within less time and follow it up as well,” he said. The highlights are no increase in power charges for any category.

Hike in fixed charges for those consuming over 300 units rejected, while fixed charges for those consuming over 800 units were approved at Rs 100. For LT (Low Tension) industries, proposed fixed charges of Rs 150 were reduced to Rs 100, and the proposed increase of Rs 100 for poultry farms was refused.

Proposals for HT (High Tension) category energy charge increases were rejected, maintaining current charges for 11, 33, and 132 KV connections, with no change for bus and railway services. A fixed charge of Rs 270 for lift irrigation was approved.

No additional charges will be imposed during peak hours. However, usage between 10 PM and 6 AM will incur an additional charge of Rs 1.50. The power supply for handloom and horticulture units was increased from HP 10 to HP 20.

These RST (Retail Supply Tariff) proposals will be effective only from November 1. Despite requests for a revenue increase of Rs 1,800 crore, the ERC approved only Rs 1,200 crore, and government subsidies of Rs 11,449.52 crore will cover the revenue gap.

In response to repeated delays by power distribution companies in filing petitions, the ERC imposed penalties with the goal of avoiding additional costs for the underprivileged.