APERC cuts power tariff by 7%

Hyderabad, March 22 | Updated: Mar 23 2005, 06:14am hrs
Andhra Pradesh Electricity Regulatory Commission (APERC) has brought down the industrial power tariff by about 7% over last year. However, it has decided not to change in tariff rate in case of domestic consumers. The new tariff order is effective from April 1, 2005.

Accordingly the energy rates for the industries will be Rs 3.25 per unit for 132 KV users, Rs 3.35 per unit for 33 KV users, Rs 3.40 per unit for 11 KV users. For all the three categories the existing rate is Rs 3.50 per unit.

The commission has finalised the power tariffs for 2005-06 here on Tuesday, after considering all objection raised by the all the stakeholders.

Announcing the tariff order to media, APERC secretary S Surya Prakasha Rao said that the state government is committed to extend Rs 1,599.48 crore as subsidy for 2005-06 in a bid to benefit domestic and agriculture consumers.

The tariff order is issued basing on the governments commitment for providing the subsidy to the power utilities, he added.

As per the tariff order, the power utilities have to achieve an efficiency gains to the tune of Rs 125 crore. Accordingly, the net revenue requirement is estimated at Rs 10,481.90 crore. However, there is no change in the tariffs for domestic, cottage industries, local bodies, general-purpose users, railways and colony consumption, said the order.

Further, APERC has also reduced the power tariff in case of lift irrigation schemes run by government institutions from the existing Rs 2.41 per unit to Rs 2.36 per unit. The commission has approved the new agricultural power policy recently announced by the government and accordingly fixed the tariff for the agriculture consumers. The dry land farmer having more than three pump sets and follow power saving methods will now pay Rs 0.20 per unit if metered, Rs 210/HP/year otherwise and corporate farmers and income tax assesses will now pay Re 1 per unit, said the tariff order.