SME Times News Bureau | 10 Feb, 2020
The Andhra Pradesh Electricity Regulatory Authority on Monday announced a
hike in electricity tariff for consumers who are consuming over 500
units per month.
The authorities increased the tariff by 90 paise
per unit for consumers falling in this category. They will now have to
pay Rs 9.95 per unit against existing Rs 9.05.
The move will
burden 1.35 lakh households across the state. APERC Chairman C.V.
Nagarjuna Reddy told reporters here that the tariff was hiked to narrow
the revenue gap of electricity distribution companies.
The power distribution companies will earn an estimated additional revenue of Rs 1,395 crore with this tariff hike.
The
APERC issued the orders after taking into account the proposals
submitted by the distribution companies and after conducting a public
hearing.
It is estimated that AP Eastern Power Distribution
Company Ltd and AP Southern Power Distribution Company Ltd will have
revenue deficit of Rs 14,349.07 crore for 2020-21. They are expecting a
subsidy of Rs 7,816 crore from the government. This includes Rs 7,463
crore subsidy for agriculture sector.
Reddy said an action plan
was prepared to provide electricity to the agriculture sector. As per
the government policy, farmers will be provided daily nine hours free
electricity.
