AMARAVATI: The Andhra Pradesh Electricity Regulatory Board (APERC) announced new tariff hikes on Monday, February 10. House hold tariff rates under 500 units were not increased. The unit price increases by 90 paise per unit from Rs 9.05 to Rs 9.95 for those consuming power above 500 units. The state government has agreed to waive of Rs 8.353 crore as subsidy for the farmers and paid the amount to electricity companies to provide free electricity to the farmers.
APERC Chairman C.V. Nagarjuna Reddy told reporters here that the tariff was hiked to narrow the revenue gap of electricity distribution companies. 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. It is estimated that AP Eastern Power Distribution Company Ltd and AP Southern Power Distribution Company Ltd will have 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 Rs 7,463 crore subsidy for agriculture sector. Reddy said an action plan was prepared to provide electricity to the agriculture sector. As per the government policy, farmers will be provided daily nine hours free electricity.
However, the state government has increased subsidy by 18 percent when compared to last year. With this increase in subsidy it will benefit an additional 18 lakh farmers. The AP government has made an agreement to pay Rs 1,707.07 crore to power companies for providing subsidy of electricity to households within 500 units.