Telangana: Electricity bills set to surge as discoms plan to collect FCA

Decision of the discoms is likely to increase the burden of the electricity consumers by Rs. 22000 crores

Hyderabad: Telangana state residents need to get ready to pay more for electricity as power distribution companies are gearing up to collect fuel cost adjustment (FCA) by adding it to the bills from April next year.

Recently, the discoms issued a draft order mentioning the collection of 30 paise per unit as FCA, an amount that is calculated based on the fluctuating prices of fuel and coal. It will be collected on a monthly basis.

The decision of the discoms is likely to increase the burden of the electricity consumers by Rs. 22000 crores.

TSERC approves Telangana discoms’ proposal to add FCA to electricity bills

Telangana State Electricity Regulatory Commission (TSERC) has not only approved the proposal but also asked the discoms to maintain a separate account for FCA.

The TSERC also directed the discoms to submit the details of the account on monthly basis.

Though the commission approved the proposal, the state government is yet to give a nod to it.

No change in electricity tariff

Earlier, the discoms made it clear that they are not going to rise the electricity tariff in 2023.

In the aggregate revenue requirements (ARR) for 2023-24, the Southern and Northern power distribution companies have not proposed any hike in the tariff.

It seems that the discoms did not propose any hike as the electricity tariff was increased recently. The hike was 50 paise per unit for domestic consumers and Re. 1 per unit for non-domestic consumers.

Another reason for keeping the tariff rates unchanged could be upcoming Assembly polls in the state which are scheduled to be held in 2023.

Even though the tariff rates are going to remain the same, the consumers may require to pay 30 paise more per unit as FCA.

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