Hyderabad Dec. 8: Power utilities in the state are heading for a major financial crisis by running up an unprecedented revenue deficit of Rs 6,450.90 crore for the present year and an estimated Rs 5,673.12 crore for the next year. The overall burden, including the dues, would touch a massive Rs 13,977 crore making things very difficult to manage. The state government has released only Rs 400 crore as subsidy to the power utilities in the last quarter despite this huge deficit.
However, the rising input costs and power purchase burden has sent the power bill zooming to new heights. The Annual Revenue Requirement document presented to the Electricity Regulatory Commission revealed the bleak situation in the power sector. The demand for electricity in the state is estimated as 76,145.58 million units, but only 74,768 mu is available. The Discoms have to purchase another 377.68 mu from the Power Trading Corporations.
Claims which are to be collected from consumers have also reached Rs 1,853.62 crore and a decision on how to realise this has been pending with the ERC. “We are asking the commission to issue appropriate orders to recover the deficit,” said a senior APTransco official. “The additional burden accrued through power purchases and distribution of free electricity to the farm sector.” Power utilities have argued for including the previous dues in the present year’s requirement.
If the Commission does not accept their demand and the state government fails to pay the Discoms, there would no choice but to pass on the burden to the consumers. “Last two years’ dues have been adjusted in the current requirement and were not collected from the consumers,” said an energy official. “We don’t think that could be possible henceforth.” Another way out is for the government to allocate a big chunk of the total Rs 13,977 crore deficit in the next budget.
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