This news may be a huge shock for people of Andhra Pradesh. The power tariff is going to be increased drastically. The AP Transco, AP Genco and distribution companies will present their annual revenue requirement (ARR) before the AP Electricity Regulatory Commission (ERC) with a request for 12 percentage increase in the Power tariff.
They have clearly said that they need an additional revenue of 1200 Crores to continue the uninterrupted power supply in 13 districts across the state. This raise will be done during the year 2016-17.
The companies already made it clear that they have incurred loss of Rs.2340 Crores. The companies say that the increase in wages of staff and the increase in proce of coal and other factors have forced them to increase the cost of Power generation. The APERC will examine the proposals and conduct a public hearing.
If they get any objections, they will look into it. But once the hearing is done, the APERC will confirm its decision on the price hike. And the moment it got signed, the hike will be coming into action from April 1, 2016.
