Get ready for 10% power tariff hike

The citizens of Bangalore, within the next three months, might have to shell out 10 per cent more for their electricity bills. However, this is no guarantee of an improvement in service.

All the electricity supply companies (Escoms) in Karnataka have applied for a 5-21 per cent hike across a range of consumers and a decision is expected by August this year.

Industry analysts indicate that Karnataka Electricity Regulatory Commission and the government are expected to allow an average of 10 per cent hike as against an average of around 14 per cent sought. They also indicate that this might ease the deficit burden for the Escoms.

But no end is in sight to the frequent power cuts the state is having to bear.

One reason is the high demand from the commercial sector, which the state is unable to cater to as the hydel resources are not able to generate enough supply.

In addition to this, Bescom (Bangalore Electricity Supply Company) needs to improve its distribution system quickly, which is not happening. Work on new sub-stations and underground cabling, essential for efficient supply, is progressing slowly.

"Almost the entire hydel generation in the state has dried up and with Maharashtra increasingly unable to supply power to Karnataka due to its own shortage, we are witnessing these frequent shutdowns. Bangalore on a average requires 23-24 million units every day but the supply is 18-20 million units. When you take this 5 million units gap for commercial industries it indeed makes a big difference," said a senior official in the Karnataka energy department.

In addition to these owes, the deficit burden on the government which is currently at Rs 2,200 crore, is expected to grow.

Seventy per cent of Karnataka's energy needs are met internally, of which nearly 33 per cent comes from hydel. With this dwindling, the state is forced to turn towards Andhra Pradesh, Goa and Neyveli, besides Maharashtra, in addition to sanctions from the Central Grid.

"Due to increasing demand in those states, they are reducing their supply to Karnataka which is compounding our problems," the official noted.