Electricity tariff hike: People to burden with ‘fuel cost adjustment’

Hyderabad: With the implementation of the fuel cost adjustment formula, DISCOMS can now be able to increase the monthly electricity tariff without seeking permissions from the Telangana State Electricity Regulatory Commission (TSERC).

A condition has also been imposed that the rate of electricity should not increase by more than 30 paise per unit per month. These new orders will come into effect in April. This decision of ERC will reduce the financial burden on DISCOMS by Rs 1500 or 2000 crore annually.

Even if electricity is purchased from the open market according to the demand in summer, Discom gets the option to charge the excess price instantly. For example, if there is an incremental expenditure of Rs.100 crores in the month of April, the calculation will be done in the month of May and the burden will be shared with the customers in June and added to the July bills.

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The Central Electricity Department had on October 22, 2021, allowed the discoms to collect costs related to uncontrollable causes in the coming months. After this decision, Telangana ERC has also made changes in the rules. Accordingly, the fuel surcharge can be collected after the adjustment formula.

However, once every three months, the accounts have to be sent for verification. At the end of the financial year, the accounts for the entire year have to be submitted to the ERC. Discoms have to upload these details on the website on the 15th of every month, however, ERC has not given permission to collect charges from agricultural pump sets.

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