Outstanding loans of energy hit Rs 30,520 Cr; Telangana looking for fresh bidders for cheap power
Since 2014, the per unit price of purchase of the distribution companies has been very high.
By Kaniza Garari Published on 11 Jan 2024 4:51 AM GMT
Hyderabad: Chief Minister A Revanth Reddy said the Telangana government is looking for bidders who can supply electricity at lower rates as a part of the new electricity policy.
The new electricity policy is being unveiled to provide succor to people as current energy rates are very high in the state.
Since 2014, the per unit price of purchase of the distribution companies has been very high. It has led to a debt crisis in the energy department.
The basis for a new policy
To fulfill the election promise of 200 free units under the Griha Jyoti scheme, it is important that the government deal with the debt cycle of Telangana State Southern Power Distribution Company Limited (TSSPDCL) and Telangana State Northern Power Distribution Company Limited (TSNPDCL). These two distribution companies purchase power and supply in the state.
The outstanding loans of TSSPDCL as of December 1, 2023, are Rs 17,977 crore and that of TSNDPCL is Rs 12,544 crore. Total outstanding loans of both companies are Rs 30,520 crores.
With distribution companies in debt, the government is working overtime to avoid crises and fulfill election promises.
Procurement cost of electricity per unit
According to the Telangana State Electricity Regulatory Council (TSERC) average electricity cost in the financial year 2022-23 costs Rs 4.78 per unit and in the financial year 2023-24 it has increased to Rs 4.994 per unit. The increase was by 0.21 paise. The KCR government did not transfer the increase of this rate to the people by increasing the electricity prices per unit. The retail price of customers per unit upto 50 units is Rs 2.60 and above 200 units is Rs 6.60 per unit.
Discomās electricity purchase prices in summer increase due to the high demand. The price of per unit varies from Rs 8.23 per unit to Rs 10.05 in summer. The peak prices of purchase in the state have gone up to Rs 20 per unit in March, April, and May.
Higher purchase prices created a burden
The higher purchase prices by distribution companies from National Thermal Power Corporations have created a debt burden. To tide out the crisis, the government is now looking at sources of procurement at lower prices from the market. A detailed study with energy experts and also good practices by other states will be taken into account to formulate the policy.
24-hour free supply to farmers
The promise of supplying free electricity to farmers will be adhered to by the government, stated CM Revanth Reddy. To meet the high demand in the state the undergoing projects of power supply must be completed soon, he asked the officials. āPrevent misuse of electricity and increase the quality,ā he asked experts.
The meeting was attended by Deputy Chief Minister Mallu Bhatti Vikramarka, ministers Uttam Kumar Reddy, Duddilla Sridhar Babu, Chief Secretary Shantikumari, officials of the electricity department, and others.
