Power sector logged Rs 1.29L cr losses under YSRC

Power sector logged Rs 1.29L cr losses under YSRC:CM Chandra Babu

Observing that timely realisation of outstanding receivables could have assisted power utilities in meeting their operating expenses, the Chief Minister said.

Accusing the previous YSRC government of pushing the energy sector into a debt trap, Chief Minister N Chandrababu Naidu said the sector sustained total losses to the tune of Rs 1,29,503 crore from financial year 2019-2020 to FY 2024-24. Naidu presented a white paper on the energy sector on Tuesday, the third of the proposed seven white papers.
In his nearly one-hour-long presentation, he elaborated on the multiple tariff hikes levied in the State under the previous regime and said, “Indirect tariff hikes through true-up charges, electricity duty, and fuel surcharge (FPPCA) were imposed on consumers. The total burden on consumers during the last five years is pegged at Rs 32,166 crore, resulting in an overall tariff increase of 21%.”

Stating that he had never heard of such taxes before, Naidu said the receipts from electricity duty that should have been forwarded to the power utilities were taken by the government, which failed to clear its dues to the power utilities. Observing that burden on consumers due to the tariff increase in the last five years is estimated to be Rs 16,699 crore, the Chief Minister pointed out, “A fuel surcharge (FPPCA) of Rs 5,886 crore was recovered from the consumers in FY2024-24. True-up charges of Rs 3,977 crore were also recovered from the consumers in FY2024-24. Increase in electricity duty resulted in a burden of 5,604 crore on consumers during the last two years.”

Five Year Report :

• Total loss incurred by power utilities – Rs 1,29,503 crore
• Tariff burden on consumers – Rs 32,166 cr
• Rise in debt of power utilities – Rs 49,596 cr
• Losses due to inefficient governance – Rs 47,741 cr.

We will strive to make AP an energy hub, asserts CM

Pointing out that the energy sector is rapidly transforming with technological advancements, Naidu expressed the government’s intention to take advantage of the momentum to address the challenges being faced by power utilities in the State. Stating that the previous TDP governments had introduced power sector reforms 1.0 and 2.0, he underscored the need for reforms 3.0 to transform the sector for empowering the society. “Hence, we are seeking input and support from all stakeholders to make Andhra Pradesh an energy hub in the future,” he added.

Further, Naidu highlighted the significant challenges his government faces in the power sector in terms of addressing the legacy losses of Rs 1,29,503 crore created by the previous government, regaining investors’ confidence and rebuilding ‘Brand Andhra Pradesh’.

“Our primary objective is to provide quality and reliable power at affordable rates to all consumers in the State without any power cuts,” he declared.

Expressing dismay over the gross mismanagement of the power sector by the previous government, he accused the YSRC regime of putting a grave burden on the people of the State and creating a crisis in the energy sector.

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