Power production cost up by 14%: Govt

Vijayawada: Energy Secretary B Sridhar said on Thursday the Andhra Pradesh State Electricity Regulatory Commission (APSERC) had released the new tariff with a view to ensure 24/7 power supply to the consumers. He said the APSERC projected that the demand for power will increase in the state and announced the new tariff after receiving the petitions from the consumers.

Addressing media at the R and B office media point, Sridhar said 50 per cent of consumers in the state come under the below 75 units tariff slab. Nominal charges will be increased for the 50 per cent consumers. He made it clear the government is using telescopic system on the requests of the consumers, under which only prescribed charges will be collected for each slap. He said the energy department will collect Rs 2,100 crore true-up charges per year and APERC has given permission to collect them for three years. He claimed that the increased power tariff is the decision of the APSERC and not the state government.

The energy secretary said there are no coal mines in Andhra Pradesh and energy department is depending on the supplies from Odisha and Telangana states. The production cost has increased by 14 per cent due to increasing transportation charges and other expenses.

Sridhar said thermal energy share is 74 per cent of total power consumed in the state. Power charges were increased by Rs 5,600 crore in Telangana whereas in Andhra Pradesh, the hike amounts only to Rs 1,400 crore. He said during the normal time, the demand for power in the state is only 180 million units but it increases to 230 million units in summer.