Variable tariff scheme for Escoms in K'taka

The Karnataka Energy Regulatory Commission (KERC) has issued an action plan for implementation of a variable tariff scheme, which is based on a model evolved by the Centre.

The action plan is aimed at efficient management of electricity load within the state by each of the power distribution companies.

According to the action plan, if electricity supply companies (Escoms) draw power from the generating stations during non-peak powers, the tariff levied will be low.

If the Escoms draw power during peak hours, the tariff will be on the higher side. The low tariff is an incentive for the Escoms to draw power during non-peak hours for efficient management and distribution.

This variable tariff scheme is modelled on the lines of the intra-state availability based tariff (ABT) evolved for the central power generation and distribution companies.

According to the KERC, the action plan will be implemented in a phased manner. Accuracy class interface meters between Karnataka Power Transmission Corporation Ltd (KPTCL), Escoms and the power generating units will be installed.

Area load despatch centres will be established by all the five Escoms to monitor the transmission of electricity, the release said.

The ABT was introduced in January 2003 in South India by the central authorities and it reportedly resulted in improvement of grid frequency.

For realising similar benefits, the national electricity policy envisaged introduction of schemes based on the ABT model in the states. Consequently, the Forum of Indian Regulators constituted a sub-committee to recommend measures.

The KERC had earlier issued a draft action plan for implementation of the variable tariff scheme in December 2005, inviting suggestions from experts and stakeholders.

"The KPTCL and five Escoms have responded positively. A task force under the chairmanship of KPTCL managing director has been formed to implement the new scheme," the release added.