The Karnataka Electricity Regulatory Commission (KERC) today approved the upward revision of power tariffs, sought by five Electricity Supply Companies (Escoms).
The increase in tariff for consumers of domestic lighting and heating installations in areas under urban local bodies and city corporation areas ranges from 5 paise to 60 paise per unit, depending on the consumption slab. The increase for village panchayat areas is 10 paise to 30 paise per unit, considering the paying capacity of consumers in these areas.
However, the state government’s Bhagya Jyoti and Kuteera Jyoti schemes will be out of the purview of the revised tariff. The KERC, in its order, has also laid down that single-phase power for at least 12 hours from 6 am to 6 pm should be provided to rural areas.
The revised tariffs will come into effect from the next meter reading or after December 7. It will be applicable to consumers of all five Escoms.
The consumers of Bangalore Electric Supply Company (BESCOM) will have to pay the highest tariff of 30.75 paise per unit more, while the consumers of Mangalore Electric Supply Company, Mangalore will pay the lowest hike of 26.63 paise per unit. The Chamundeshwari Electricity Supply Company, Mysore has effected a hike of 28.53 paise per unit, Gulbarga Electricity Supply Company has announced 29.48 paise per unit. The Hubli Electricity Supply Company, Hubli has raised 28.64 paise per unit.
“The increase in power tariff this year was inevitable considering the power crisis in recent times. Lesser rains than expected and the unexpected technical hitches at Raichur and Bellary units have also added to it. However, we have ensured to cap it at 30 paise per unit and not 70 paise as requested by Escoms,” M R Sreenivasa Murthy, chairman, KERC told reporters.
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The increase in tariff is based on the commission decision to pass on 22 paise per unit out of the increased average cost of 45 paise per unit proposed in the tariff determined for 2011. The remaining 23 paise per unit will be treated as ‘regulatory asset’ (deferred revenue) and an amount of Rs 839 crore will be adjusted in the remaining years of the control period, he added.
Commenting on the tariff hike order, the industry chambers have expressed their deep disappointment. “Though a plain reading of the announcement indicates an increase of 30-35 paise in respect of LT and HT industries, the liability that has to be taken into account is the quantum of 23 paise which has been set apart as Regulatory Asset, is something that the industry cannot accept,” the Federation of Karnataka Chambers of Commerce and Industry (FKCCI) said.
On the top of this hike, there is an unknown element of the outcome of review petition filed by Government of Karnataka in respect of subsidy payable towards IP set consumption to the tune of Rs 3,922.68 crore, which is yet to be made known to the public since orders have been reserved in respect of this review petition, N S Srinivasa Murthy, president, FKCCI said.
The Escoms had been demanding a tariff revision since August, citing overall increase in cost of operations, cost of power purchase and other expenses. The commission’s order comes after examination of the various proposals and public hearings held on the issue.
Further, the commission has also revised its mandate on emergency power purchase. Accordingly, all purchases at Rs 4 and above per unit now must seek the commission approval. This was earlier fixed at Rs 6 per unit.