AP hikes tariff for electricity consumption above 500 units a month

The AP Electricity Regulatory Commission (APERC) announced a hike in electricity tariff for citizens consuming more than 500 units per month. The tariff has been hiked by 90 paise per unit for consumers in the category. The consumers would have to shell out Rs 9.95 per unit as compared to Rs 9.05 previously. As per reports, the price for charging of electric vehicles has remained at Rs 6.70 per unit, instead of a proposed rate of Rs 12.25 per unit.

The APERC issued the hike order after examining the proposals submitted by multiple distribution companies. The move that was announced on Monday is set to affect an estimated 1.35 lakh households across Andhra Pradesh. The estimated additional revenue of Rs 1,395 crore will be raked in by the power distribution companies with the new tariffs.

Officials stated that the AP Eastern Power Distribution Company Ltd and AP Southern Power Distribution Company Ltd have witnessed a net deficit of Rs.10060.63 crore for 2020-21. The officials in AP stated that the reason for the tariff hike was to reduce the revenue gap of electricity distribution companies.

In view of the tariff hikes, the officials mentioned that the energy surplus of 9500 million units will be distributed to the farmers in need, instead of selling it to private power companies. The authorities officially stated that farmers will be provided a power supply for 9 hours, as per government policy. Further, a subsidy of Rs. 8353.58 will also be reportedly provided to the farmers, as per the official statements.