Power tariff hike mere proposal, not final decision: Kiran

With government's proposed move to enhance power tariff in the ensuing fiscal year threatening to affect Congress prospects in the election year, Andhra Pradesh Chief Minister N Kiran Kumar Reddy on Saturday sought to play it down saying a final decision on it was still pending.

It's surprising that political parties started agitating even before the hike happened. It is only a proposal (by the power distribution companies) and the government has not taken a final decision on power tariff hike, the Chief Minister said addressing a meeting organised to distribute monetary compensation to land evacuees in Hyderabad today.

Kiran said the state Cabinet would discuss the issue before taking a decision on the proposed hike.
 The four power distribution companies recently submitted their mandatory Annual Revenue Requirement details to the AP Electricity Regulatory Authority proposing to enhance power tariff for various categories.

The total financial burden on account of the proposed hike is expected to be around Rs 12,600 crore affecting domestic, commercial and industrial consumers.

Already the Discoms are levying Fuel Adjustment Surcharge on power consumers running into several thousands of crores of rupees every quarter as the government is purchasing power from outside sources to overcome the unprecedented crisis.

Not only the opposition parties but also majority of ruling Congress leaders, including ministers, MPs and legislators have denounced the Discoms' move and demanded that the government drop the plan. Congress leaders are worried that the power tariff hike will dislodge the party from power as it happened to the TDP before 2004. In this backdrop, the Chief Minister broke his silence and said the hike was only a proposal and not the final decision of the government.