Andhra Pradesh discomssuggest a cross-subsidy surcharge of Rs 2.45 per kWh for renewable energy sales

Andhra Pradesh’s distribution companies (discoms) have submitted the Aggregate Revenue Requirement application for the retail supply business and proposed tariffs for the financial year 2020-21. They have additionally proposed two revisions which pertain to cross-subsidy surcharge and energy tariffs. The discoms involved in the proposals are The Eastern Power Distribution Company of Andhra Pradesh Limited (APEPDCL) and the Southern Power Distribution Company of Andhra Pradesh Limited (APSPDCL). With the expectation of a rise in green power sales under the 33 kV category, the APSPDCL proposed the introduction of a cross-subsidy surcharge of Rs 2.45 per kWh for renewable energy from 2021-22.

The discoms also proposed changes in the tariff regime. For the lowtension Category I-A, APEPDCL suggested the removal of the monthly minimum charges in the domestic category and proposed the levy of a fixed charge of Rs 10 per kW per month. They reported that this would increase revenue by 1.07 per cent. For high tension Category I-B (townships, colonies, gated communities, and villas), APEPDCL suggested the inclusion of all new group housing societies, apartment complexes, townships, industrial colonies, and gated communities. APSPDCL also proposed the removal ofthe monthly minimum charges.

In December 2020, the APEPDCL floated two tenders to empanel agencies to install 8 MW of grid-connected residential rooftop solar projects of capacity between 1 kW and 500 kW through the capex model. In September 2020, Andhra Pradesh approved a fund to the tune of Rs 9 billion to meet the expenditure of the state distribution companies.

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