Brace for power shock: As coffers run dry, Telangana Government mulls tariff hike

Hyderabad: The state government which had hiked the market value of lands, stamp duty and initiated the process for Land Regularisation Scheme with an aim to generate Rs 50,000 crore is now getting ready to increase the power tariff.

It may be mentioned here that the government has been footing the bill of power subsidy to the DISCOMS. If power tariff is increased, the government may some relief from this burden. Justifying the likely hike in power tariff, sources said that the tariff was not revised even once after the formation of Telangana in 2014.

Though it was contemplated a couple of times in the past, the Chief Minister turned down the proposal as the state had to face Assembly, Lok Sabha and local body elections. Top officials said that the proposal to increase power tariff is now once again under active consideration.

They said the power utilities (TSSPDCL and TSNPDCL) were in the process of updating ARR (Annual Revenue Receipts). The general practice is that the utilities submit ARR to the Telangana State Electricity Regulatory Commission in December. After conducting public hearing, the Commission would finalise the revised tariffs and the same would come into force from April.

The government has been paying nearly Rs 300 crore every month as power subsidy to the power utilities for the supply of round the clock free power to agriculture.

Subsidized power to the domestic and industrial sectors, increased maintenance costs, hike in salaries of employees and non-revision of power tariff had put heavy burden on the power utilities.

Hence the only option available was to revise the tariff, the sources add. The revision would be applicable for slabs over 100 units. A final decision will be taken after the Huzurabad Assembly bypoll.