FTAPPCI objects to petitions filed by Telangana discoms on ARR for Retail Supply Biz

Hyderabad, Apr 7 (KNN) The Telangana industries are quite unhappy with the proposals on ARR and tariff for Retail Supply Business stating that the State Government has failed to keep its subsidy commitment in FY 2015-16.

The Federation of Telangana and Andhra Pradesh Chambers of Commerce and Industry (FTAPCCI) has presented its statement on objection over ARR and tariff proposals for Retail Supply Business including Cross Subsidy Surcharge and Additional Surcharge for Open Access for FY 2016-17 during the Public Hearing held at FTAPCCI.

Anil Reddy Vennam, President, FTAPCCI strongly objected to the claims of DISCOMs of the Aggregate Revenue Requirement (Rs. 21376.86 crore for TSSPDCL and 8830.33 crore for TSNPDCL).

He said that by not undertaking the revision of norms of operations as framed by the CERC, the Commission is promoting inefficiency and is violative of Electricity Act 2003.

He suggested the Commission not to allow any escalation in fixed and variable costs of GENCO till the time the generation tariffs are not finalized for GENCO.

He objected to the unreasonable higher power purchase rate from APGENCO and TSGENCO stations and also from bilateral and market purchases.

“It was also pointed out that the State Government has failed to keep its subsidy commitment in FY 2015-16. As against the subsidy commitment of Rs 4257.25 crore, the actual subsidy provided is only Rs 3192.93 crore, thereby entailing a shortfall of 1064.32 crore,” FTAPCCI said in a statement. 

Also additional subsidy of 575.21 crore based on the revised estimated consumption of LT-V category is to be paid by the government, it added. (KNN Bureau)