 "AP discoms propose lowest tariff hike of 4%")
This comes as the lowest ever increase sought by the power utilities. In its previous tariff order the state electricity regulator had allowed a 5 per cent increase in tariff for the current year as against a 6 per cent rise asked for by the discoms.
On Thursday the state discoms have filed their annual revenue requirement (ARR) submissions with the AP Electricity Regulatory Commission (APERC) with an estimated requirement of Rs 28,423 crore to serve the consumers as compared with the expected revenues of Rs 23,275 crore based on the existing tariff structure.
The regulator would give a tariff order for the next year, effective from April, 2016, after conducting public hearings on these proposals some time in March.
Justifying their proposals, the power utilities have informed that the average cost of supply was increased to Rs 5.60 per unit as compared to Rs 5.38 per unit of cost approved for the current year. The increase was primarily on account of the rise in the power purchase costs, they said.
The said revenue gap was worked out after taking into account a sale of 7,142 units of surplus power to other states. They are expected to receive Rs 1,176 from the sale of surplus power.
For the year 2016-17, the total availability of power was pegged at 66,839 million units (mu) and the total consumption of 57,565 mu after projecting a 13.85 per cent increase in sales.