The Telangana power distribution companies are all set to collect a Fuel Cost Adjustment (FCA) from April in 2023. It is learnt that the discoms recently had issued a draft order to collect a maximum of 30 paisa per unit as FCA on a monthly basis beginning April.The move is expected to burden the consumers by Rs 22,000 crore. Earlier, the discoms have decided not to hike power tariff for the financial year 2023-24.
The FCA is the amount that is added to the electricity bill based on the price of fuel or coal, which fluctuates based on demand and supply.The discoms were burdened by the rising cost of coal for thermal power plants and power procurement from India Energy Exchange (IEX) every day. The Centre also directed states to revise electricity rates on a monthly basis.
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