19 March 2011: The officials of APTransco announced 6% discount on bills of Rs.1,000 or above on paying them before seven days of due date. All industrial, commercial and domestic consumers can avail this opportunity from April 1, 2011. This initiation was taken so that these advance payments will help the department to meet its working capital needs and also to pay the interests of the high cost loans taken. The department is facing on an average of 8 – 10% interest rates per annum on short term debts only. This discount is applicable to electronic or online payment, through cash or by cheque. This idea was suggested by AP Electricity Regulatory Commission (APERC), and this incentive scheme is found to incur loss of Rs.50 to Rs.125 crore per annum, but in longer run is supposed to generate profits. This incentive scheme is already in vogue in Maharashtra and Karnataka.
Source: Times of India