The Andhra Pradesh Electricity Regulatory Authority on Monday announced a hike in electricity tariff for residents 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 the existing rate of Rs 9.05.
The move will burden 1.35 lakh households across the state. APERC Chairman C V Nagarjuna Reddy told reporters that the tariff was hiked to narrow the revenue gap of electricity distribution companies. According to The Hindu, the Chairman said that 99% of a total of 1,45,00,000 domestic consumers would not be affected by the revised tariff.
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.
The tariff for charging of electric vehicles has been fixed at Rs 6.70 per unit, against the rate of Rs12.25 per unit proposed by the discoms, according to reports.
It is estimated that AP Eastern Power Distribution Company Ltd and AP Southern Power Distribution Company Ltd will have a 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 an amount of Rs 7,463 crore subsidy for the agriculture sector.
Nagarjuna Reddy said an action plan was prepared to provide electricity to the agriculture sector. As per the government policy, farmers will be provided nine hours of free electricity daily.
On Monday, the Andhra Pradesh government signed memoranda of understanding with 11 premier agricultural institutions in the country to usher in â€śrevolutionary changesâ€ť in the sector through technology and knowledge transfer to farmers in the state.