No hike in power tariffs in 2023-24 fiscal in Andhra Pradesh, says APERC Chairman Nagarjuna Reddy

Though the Discoms have reported a revenue gap of ₹14,028.764 crore, the APERC has revised it to ₹10,135.22 crore, and the government has come forward to bridge it in the form of subsidy, he says

Andhra Pradesh State Electricity Regulatory Commission (APERC) Chairman C.V. Nagarjuna Reddy has said that there will not be any increase in the power charges in the financial year 2023-24.

“Every electricity consumer can heave a sigh of relief as there will be no additional burden on the electricity charges,” Mr. Nagarjuna Reddy said while addressing the media here on Saturday.

Mr. Nagarjuna Reddy said, “The decision has been taken as the State Government committed itself to bridge the revenue gap of ₹10,135.22 crore faced by the three power distribution companies — Visakhapatnam-based EPDCL, CPDCL [Vijayawada] and SPDCL [Tirupati].”

The Discoms had actually projected a revenue deficit of ₹14,028.764 crore in their Annual Aggregate Revenue report, he said.

“Electricity charges have to be increased to bridge the revenue gap. Also, alternative means have to be explored to reduce the shortfall. The APERC has revised the Discoms’ projected deficit to ₹10,135.22 crore. The government has come forward to bear the amount in the form of subsidy under Section 65 of the Electricity Act, 2023,” Mr. Nagarjuna Reddy said.

The subsidy given by the government would go to the farmers who were being given nine hours of free electricity and other beneficiaries. “Therefore, there will be no increase in the electricity charges in the new fiscal,” he said.

“Energy-incentive industries are an exception. For them, we have accepted the proposed demand charges of ₹475 per kVA per month,” he said.