CPI registers its objections to proposed FPPCA with APERC-OxBig News Network

The Communist Party of India filed objections and suggestions to the Andhra Pradesh Electricity Regulatory Commission (APERC) regarding the true-up charges.

The CPI State secretary K. Ramakrishna, on Monday, November 18, said that the Eastern, Central, and Southern Power Distribution Companies sought public objections and feedback on the Fuel Price and Power Purchase Cost Adjustment (FPPCA) proposals for the financial year 2023-24. These proposals would impose a financial burden of ₹11,820 crore on electricity consumers. An additional charge between 50 paise and ₹2.50 per unit would be levied monthly on electricity consumed during the 2023-24 fiscal year. Just a month ago, a burden of ₹6,072 crores was imposed, and now doubling that amount is unjust, he said.

The government’s inefficient policies, corruption, additional payments to large companies, the halting of power generation in government-owned thermal plants, purchasing electricity from the open market at high rates, surcharges, interest rates, and other factors were some of the causes of this burden, he said. 

The APERC must identify and rectify these issues without passing on the burden to the public. The Commission should also reconsider and cancel the recent order to collect ₹6,072 crore in true-up charges for the 2022-23 financial year. The practice of collecting adjustment and true-up charges from consumers for electricity used months or even years ago is deeply flawed. The government and distribution companies were misusing this system, resulting in additional burdens on the public. Therefore, the true-up and adjustment charges system should be abolished entirely, he said.

The present government had promised not to impose extra financial burdens on the public and to reduce electricity charges. Therefore, the government must honour its commitment and bear the additional costs. The Commission should issue appropriate directions in this regard, he added.