Though the State government was not in favor of power tariff hike, it was constrained to approve the proposal of Andhra Pradesh Electricity Regulatory Commission (APERC) to increase power charges, said 20-Points Program Chairman Dr N Thulsasi Reddy here on Saturday.
Speaking at the Secretariat media point, Dr Thulasi Reddy said that the APERC had taken the decision of power tariff hike to protect and maintain the power distribution corporations. As per the existing rates, Power Distribution Corporations got Rs 24,544 crores while the expenditure was Rs 34,244 crores during 2012-13 resulting in the loss of Rs 9,800 crores. Of the Rs 9,800-crore loss, the State government was extending Rs 5,358 crores to power distribution corporations towards subsidy.
Defending the decision to hike power charges by the APERC with the consent of the State government, he pointed out that the expenditure on power sector increased due to hike in the prices of coal and LPG, fall in rupee value. If the tariff was not hiked, power sector would be in great crisis. He also made it clear that the increased power tariff was less than in the neighboring Karnataka, Tamilnadu and Maharashtra.
Pointing out that previous TDP government had hiked power tariff eight times during its nine-year tenure, Dr Reddy said that the Congress government hiked power tariff only once in the last eight years. Moreover, the new tariff is not applicable to 30-lakh agriculture connections. As there was no hike in the tariff up to consumption of 50 units for domestic sector, some 1.1 crore domestic connections would not come under power tariff hike coverage. Similarly, 10.24 lakh commercial connections would not be covered by power tariff hike, he added.
Dr Thulasi Reddy appealed to the power consumers and political parties to understand the financial condition of the power distribution corporation and cooperate with the government with regard to power tariff hike. (NSS)