Pricing proposals for retail supply will be filed with CSERT, as tariffs have remained unchanged for the past four years
Before filing retail supply tariff (RST) proposals with the Telangana State Electricity Regulatory Commission (TSERC), the state electricity utilities, which have already requested the Government authorization to increase the tariff, which has remained unchanged for the past four years, appears to be paving the way for creating the mood.
Finance Minister T. Harish Rao and Energy Minister G. Jagadish Reddy held discussions with senior executives from the four electric utilities, including Special Chief Secretary (Energy) Sunil Sharma for the second day Tuesday. Emphasis was placed on the growing burden imposed by the Center in the name of green / clean energy tax, coal prices, coal transportation costs, renewable energy purchase obligation and exposure to the load in the form of certain power purchase agreements such as Krishnapatnam during discussions held on Tuesday.
The meeting believed that the increase in clean energy consumption from 50 per tonne to 400 per tonne of coal alone had weighed on electric utilities by 7,200 crore over the past seven years. In addition, the increase in coal prices of 6% to 10% each year also weighed on the two electricity distribution companies (Discoms) by around 725 crore each year. In addition, the increased cost of transporting coal has also increased the burden on Discoms, with transport costs increasing by 40% in the past seven years. When the Discoms were struggling to make up for losses from such loads, the Renewable Power Purchase Obligation (RPPO) constraint also showed a telling impact on the plant load factor of the Telangana State Power Generation Corporation plants. (TSGenco).
The meeting also recorded that the Discoms had to bear an additional charge of 2,763 crore for the purchase of energy on the open market after the removal of the Krishnapatnam PPAs by Andhra Pradesh and the takeover of Lower Sileru, refusing low cost energy to Telangana immediately after the AP junction. The shutdown of power supplies to other AP production stations also weighed on Telangana Discoms by another ₹ 2,502 crore. The Telangana Discoms had 12,185 crore on the date of state formation and Telangana’s losses and in addition, the state government paid a grant of 18,167 for each agricultural pump connection each year with uninterrupted power supply. and the connections had gone from Lake 19.03 to lake 25.92 with an expenditure of 3,375 crore on the new lake connections 6.89. He was spending an additional 3,200 crore on elevator irrigation projects.
Subsidies given to all domestic consumers with consumption up to 200 units per month, free electricity given to SC, ST consumers with consumption up to 100 units, hairdressing salons, dhobi ghats and laundries with consumption up to ‘to 250 units and a subsidy of 2 per unit given to power looms, poultry units and spinning mills was also given. The collection of energy charges of 4,374 crore was also affected due to the impact of COVID-19, resulting in an additional charge for the Discoms.