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Hyderabad: Soon electricity consumers and TSRTC commuters may have to pay more, as state government is expected to approve proposals to increase electricity charges and RTC bus fares at next meeting of the cabinet. Chief Minister K Chandrasekhar Rao, who held a review meeting on the RTC and the electricity department, called on officials to make proposals on increasing the charges.
The government has not revised the electricity tariff for the past seven years after the state was formed. Electricity distribution companies typically submit their aggregate revenue requirements (ARR) to the Telangana State Electricity Regulatory Commission (TSERC) in November of each year and any increases will take effect from the next. exercise.
But, dcoms can request authorization from TSERC to allow them to increase the rate immediately. Telangana Southern Power Distribution Company Limited and Telangana Northern Power Distribution Company Limited both faced a huge revenue shortfall due to rising electricity costs and loss of revenue to government subsidies. electricity for agriculture and other sectors.
Senior RTC officials told CM the company was facing serious financial losses. Due to the pandemic and lockdowns, RTC losses have reached Rs 3,000 crore in the past year. While all 97 deposits are in loss, in Hyderabad alone losses have reached Rs 90 crore per month.
Officials recalled that the government announced at the assembly in March 2020 that RTC tariffs would be increased. “But, the rates have not been increased due to Covid-19. Diesel prices have increased by Rs 22 over the past year and as a result RTC is struggling with an additional charge of Rs 550 crore per year. Likewise, the prices of bus tires and spare parts have also increased. The overall additional burden is around Rs 600 crore on the company, â€the officials explained.
KCR said the government wanted to switch to the RTC and started efforts in this regard two years ago, but there has been no improvement due to the pandemic, lockdowns and rising costs of the RTC. fuel. He said the government would take all necessary steps to get the RTC back on track. Ministers KT Rama Rao, Puvvada Ajay Kumar and G Jagadish Reddy, RTC Chairman Bajireddy Govardhan, Chief Secretary Somesh Kumar and RTC MD VC Sajjanar were present.
Senior RTC officials told CM the company was facing serious financial losses. Due to the pandemic and lockdowns, RTC losses have reached Rs 3,000 crore in the past year. While all 97 deposits are in loss, in Hyderabad alone losses have reached Rs 90 crore per month.
The government has not revised the electricity tariff for the past seven years after the state was formed. Electricity distribution companies typically submit their aggregate revenue requirements (ARR) to the Telangana State Electricity Regulatory Commission (TSERC) in November of each year and any increases will take effect from the next. exercise.
But, dcoms can request authorization from TSERC to allow them to increase the rate immediately. Telangana Southern Power Distribution Company Limited and Telangana Northern Power Distribution Company Limited both faced a huge revenue shortfall due to rising electricity costs and loss of revenue to government subsidies. electricity for agriculture and other sectors.
Senior RTC officials told CM the company was facing serious financial losses. Due to the pandemic and lockdowns, RTC losses have reached Rs 3,000 crore in the past year. While all 97 deposits are in loss, in Hyderabad alone losses have reached Rs 90 crore per month.
Officials recalled that the government announced at the assembly in March 2020 that RTC tariffs would be increased. “But, the rates have not been increased due to Covid-19. Diesel prices have increased by Rs 22 over the past year and as a result RTC is struggling with an additional charge of Rs 550 crore per year. Likewise, the prices of bus tires and spare parts have also increased. The overall additional burden is around Rs 600 crore on the company, â€the officials explained.
KCR said the government wanted to switch to the RTC and started efforts in this regard two years ago, but there has been no improvement due to the pandemic, lockdowns and rising costs of the RTC. fuel. He said the government would take all necessary steps to get the RTC back on track. Ministers KT Rama Rao, Puvvada Ajay Kumar and G Jagadish Reddy, RTC Chairman Bajireddy Govardhan, Chief Secretary Somesh Kumar and RTC MD VC Sajjanar were present.
Senior RTC officials told CM the company was facing serious financial losses. Due to the pandemic and lockdowns, RTC losses have reached Rs 3,000 crore in the past year. While all 97 deposits are in loss, in Hyderabad alone losses have reached Rs 90 crore per month.
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