Currently, Telangana Power Distribution companies are running in losses. In order to balance the equation, power companies are planning to increase customers’ electricity charges. Accordingly, TS GENCO and TS TRANSCO authorities have met Chief Minister, K Chandra Sekhar Rao and discussed the matter. The Chief Minister has already given the ‘go’ sign for the increase.
As of now, it is estimated that power companies are in losses to the tune of 1500 crores. Southern Power Distribution Company is at a loss of 39 paisa per unit of power handed out to customers and Northern Power Distribution is at a loss of 17 paisa per unit. The power companies believe increase of power charges will overcome the loss of 1500 crores.
In relation to this, the Chief Minister has advised the power companies to not to levy heavy charges on customers. Accordingly, the power companies will not charge extra for customers whose power utilization is below 100 units
But those in the bracket of 100 to 1000 units will have to bear the increase of charges. There will be 8% to 10% increase compared to previous charges. In general, whenever power companies are go through losses, government subsidies are what ensure there is no heavy burden on customers.
Speaking to the power distribution authorities, KCR has informed that he will allocate around Rs.10, 000 crores as subsidy in the coming 2020-21 budget, ensuring safety for the consumers.