Discoms turn to ERC to get dues
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AP discoms are banking on the AP Electricity Regulatory Commission to bail them out by accepting their fresh Fuel Surcharge Agreement (FSA) claims for the first quarter of 2012-2013 amounting to Rs 2,165 crore along with the 2010-2011 and 2011-2012 proposals of Rs 8,023 crore.
The commission had earlier rejected FSA claims for 2008-2009 and the High Court stayed FSA collection a month after it was passed.
If the fresh FSA claims are approved, it will be passed on to consumers this year.
If the FSA already spent by the discoms in the previous years is not recovered, the discoms will plunge into a deeper financial crisis.
While the public hearing for FSA claims for the years 2010-2011 and 2011- 2012 is over, a decision is expected within the next fortnight.
The discoms had earlier lost out on FSA claims due to delay in filing of the claims, but the claims for the years 2010-2011 and 2011-2012 were filed in stipulated time.
Recovery of all three FSA amounts from the consumers together will put greater burden on all categories of consumers who will have to pay huge bills.
Meanwhile, the state discoms already reeling under Rs 23,000 crore losses indicate that the entire power sector in the state may collapse anytime given the present financial position.
Even as large number of projects await coal and gas linkage, discoms are not keen on importing coal or even purchasing power due to the huge financial crisis they are facing.
“Power was purchased at very high rates in the past on the instructions of the State government. As most of these were oral orders, there is no proof with the discoms and therefore the FSA claims were turned down.
But since 2010-2011 the claims have been filed on time but we are yet to recover the amount that has already been spent. The sector is on the verge of a total collapse,” said senior official.
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