Vijayawada, December 1.

The AP government is going to shock the public by hiking power tariff after the AP power utilities submitted annual revenue requirement (ARR) document with a deficit of Rs. 7,177 crores for the 2017-18 financial year to APERC.

It was stated in the document that the proposals for increasing the tariff, class-wise would be informed later. Though there was no clarity on the percentage of tariff hike,  the power utilities officials confirmed power tariff hike soon.

power tariff

The Discom projected the annual revenue requirement for next financial year at Rs. 30,069 crore, while the projected revenue from power tariff is pegged at Rs. 22,892 crore only.

The average cost of service per unit is Rs. 5.29 in 2016-17.  Excluding additional power sales, the purchases, distribution losses, network rates and other expenditures will increase the expenditure on power by 12.47 per cent in the next fiscal year, the officials estimated.

The senior officials are reconsidering about the government giving subsidy to power organizations in the present financial crisis. Considering all these issues, the power tariff may increase from 0.65 paise to one rupee per unit.