Transco defers submission of ARR to APERC

Hyderabad, April 17: The AP Power Transmission Corporation (Transco) once again deferred submission of its Aggregate Revenue Report (which determines the tariff for the power being used by the consumers) to the AP Electricity Regulatory Commission (APERC) with the State Government not giving the go-ahead signal.

Transco has requested the APERC to allow it to submit the ARR on Thursday but failed to do so. In fact, it was to submit the report as long back as November last year and has been postponing the submission for one reason or the other. The government has to clear the ARR for its submission to the commission. The ARR projects the revenue and expenditure of the power distribution companies (Discoms) and it has to be submitted every year. In the report the Discoms indicate their revenues and seek permission of the commission to revise the tariffs as per their needs. On its part the government indicates the subsidy it would bear and the Discoms spell out their tariff requirements after considering the subsidies.

The government has to pay Rs 11,500 crore of subsidy arrears to the Discoms but has not spelt out its stand on when and how it would pay them. It has to pay either in the lumpsum or installments or to allow the Discoms to get back arrears without its support or, in other terms, allow them to raise the tariff.

Powers that be are unable to come to a conclusion on payment of the arrears.

The government finds itself between the devil and the deep sea. If it allows the tariff to be raised, it would give the Opposition parties a handle to castigate the government. It will also dent the chances of the ruling party in the coming local body elections. If it does not allow a tariff hike, it has to show the Discoms a way out of the trouble. Though several meetings were held with Transco, Discoms and energy department officials, the government is unable to take a decision.

–Agencies