Hyderabad, Janaury 07: Power tariff is likely to be hiked with the APTransco proposing a major burden on domestic consumers along with commercial and industrial sectors.
Proposals to this effect are learnt to have been prepared by the officials of APTransco and are under serious consideration of the State Government.
In violation of the election promise made by former chief minister late YS Rajasekhara Reddy that power tariff will not be hiked for next five years, the Government reportedly decided to go ahead with the proposals which will be submitted to the AP Electricity Regulartory Board (APERC) within a week. Sources said that the hike in power tariff does seem to be inevitable as the Government is left with no option but to evade current financial crisis in the State. Though the amount of increase in power tariff will be fixed by the APERC after final consultations, sources hinted that the hike will not be small.
The situation is learnt to have arisen due to pending payments of subsidy amounts to the Distribution Companies (Discoms) by the State Government which is already cashtrapped.
The Government is distributing power for free or at subsidised rates to various sectors including farmers. Sources said that the Government could not realise these payments to a tune of about Rs 12,000 crore to the Discoms which pushed the Discoms into financial troubles.
Following the pressure from the Discoms, the APTransco officials are learnt to have put forward proposals asking the Government to either disburse the subsidy amount to the Discoms or increase the power tariff.
Keeping in view of its financial situation, the Government reportedly opted for increase in power tariff.
When contacted Principal Secretary for Energy Suthirtha Bhattarcharya refused to reveal any details on the proposals to be put forward before the APERC. He neither denied or confirmed the reports about hike in power tariff.
“The power tariff for 2010-11 will be decided by the Regulatory Commission.
Further, several issues are yet to be finalised before taking a final decision,’’ he said.
–Agencies