AP Transco sees Rs 1,535-cr revenue gap

The Andhra Pradesh Transmission Corporation (APTransco) yesterday submitted its annual revenue requirement(ARR)and tariff proposals for the year 2004-05 to Andhra Pradesh Electricity Regulatory Commission(APERC), showing a revenue gap of Rs 1,535 crore.

The power utility also submitted its proposals for the revision of the ARR earlier approved by APERC for the year 2003-04.

As expected, APTransco did not propose any hike in the present tariff structure, apparently in view of the ensuing Assembly elections. The four power distribution companies(Discoms) also submitted their customary ARR reports along with the main power utility.

The joint managing directors of APTransco, G Saiprasad and M Malakondiah, along with the director (commercial and planning), PMK Gandhi, submitted the reports on behalf of APTransco to G P Rao, the chairman of APERC.

Talking to press persons after handing over the proposals, Gandhi said that APTransco had not asked for any hike in tariff despite facing some adversities like change in hydro-thermal power mix.

Without elaborating much on the figures, he said that the power utility was confident of taking care of the additional financial burden arising out of uncontrolled factors, as it had further improved its efficiency levels by reducing transmission and distribution (T&D) losses and improving the revenue levels.

Gandhi refused to elaborate on the actual projections on revenue and expenditure fronts, and also on the efficiency levels, saying that the revenue gap was the same as envisaged in the business plan(which was again not made public) of the APTransco.

But it is reliably learnt that this time the APTransco had projected the annual revenue requirement to the tune of Rs 9,827 crore and actual revenue estimates at Rs 8,293 crore, leaving a revenue gap of Rs 1535 crore.

It is interesting to note that the revenue gap shown in the latest ARR of the Transmission Corporation is almost equal to the power subsidy committed by the state government for the present financial year.

Another interesting point is that the annual revenue requirement proposed for 2004-05 is almost the same when compared with the ARR for the current year, showing a marginal increase of Rs 47 crore.

For 2003-04 APTransco projected a revenue of Rs 8,031 crore, leaving a gap of Rs 1,748.91 crore. But the commission in its tariff order directed the Discoms to achieve efficiency gains of Rs 295 crore, and agreed to a final revenue gap of Rs 1513.49 crore.

The state government on its part agreed to provide Rs 1,513 crore as subsidy for the reduction of tariff in certain categories.