Even as power distribution companies (discoms) get ready to submit their annual aggregate revenue requirement to the AP Electricity Regulatory Commission (APERC) on Monday, power sector in the state has registered a huge revenue gap of 24.18 per cent. In terms of money, state discoms face a revenue shortfall of Rs 10,345 crore.
Official data indicates that the average cost of supplying power to a consumer in the state is Rs 6.92 per kWh, while the projected revenue of the utilities on a per unit of electricity basis after considering all revenue sources such as tariff income, cross subsidy surcharge, etc. is only Rs 5.25. The gap between expenditure and income is Rs 1.67 per kWh, which in total translates to a gap of Rs 10,345 crore.
The tariff income for the year is Rs 30,148.29 crore, which translates to Rs 4.88 per kWh. The real gap between the cost associated with supplying power and revenues realized is Rs 2.04 per kWh, translating to a gap of Rs 12,630 crore. Sources said there is no choice but to undertake deep structural reforms to undo the profound systemic damage to the power sector.
Officials also blame the previous regime for the power sector’s liabilities. The debt in the books of power sector corporations has more than doubled from Rs 33,587.98 crore to Rs 70,254 crore over the five-year period (2014-19). Dues by discoms to power generators have increased more than seven-fold, from Rs 2,893.23 crore to Rs 21,540.96 crore during 2014-19. Sources said the interest burden alone is about Rs 8,000 crore per annum, which translates to Rs 1.33 per kWh of power.
