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Home News Power Sector News Karnataka power tariff increased by 34.16 paise per unit

Karnataka power tariff increased by 34.16 paise per unit

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KarnatakaKarnataka Electricity Regulatory Commission (KERC) has increased the power tariff in karnataka state by an average of 34.16 paise per unit, effective from 1 December. This works out to a hike of 7.5 per cent on average. For the first time, each of the five electricity supplying companies in the state will have slightly different tariffs instead of the present system of uniform tariff, as the KERC issued a differential tariff order. The hike varies for each category of consumers.The state's electricity supply companies (Elcoms) had earlier demanded a rise to 51 paise per unit. These include Bangalore Electricity Supply Co Ltd (Bescom), Mangalore Electricity Supply Co Ltd (Mescom), Chamundeshwari Electrical Supply Corp (CESC) for Mysore region, Hubli Electricity Supply Co Ltd (Hescom) and Gulbarga Electricity Supply Co (Gescom).

The good news for domestic consumers in all the Escoms is that there is no increase in tariff for the first 100 units consumed by them. But they will have to pay an additional 30 paise per unit for consumption between 101 and 200 units, an additional 40 paise from 200 to 300 units, 50 paise from 300 to 400 units, and 120 paise for the consumption above 400 units.

"The tariff order will be effective from December 1, 2009, and this will continue till a new tariff order is passed by the commission after the electricity companies file applications for tariff revision," KP Pandey, chairman, KERC, said.

The power tariff hike has also affected the high tension commercial category, which includes hotels and restaurants. The power tariff hike for this category will be 75-80 paise per unit. This will have a cascading effect on all the sectors, feel experts.

The commission has introduced the differential tariff applicable for the financial year 2009-10. This follows the ESCOMs' application for tariff revision filed on June 30, 2009.

The average cost of power supply is Rs4.21 per unit for BESCOM and the state average cost of supply is Rs4.17 per unit.

KERC chairman Pandey said that the government will meet the uncovered revenue gap of Rs1,348.35 crore by way of additional tariff subsidy as per its policy decision of giving free power to irrigation pump (IP) set consumers.

With transmission and distribution loss standing at 24.4%, the KERC chairman said the state government should increase the efficiency of the distribution companies.

He said Mangalore electricity supply company (MESCOM) is the only one in the state to have metered up to 90%of the IP sets.

"The government should improve efficiency to free themselves from the burden of paying additional money," the KERC chairman said.

The KERC has continued its previous exercise of classifying consumers into three categories - those in Bruhat Bangalore Mahanagara Palike, urban local bodies, and village panchayat areas.

The increase for those in ULBs and VPs is less than for those in the BBMP area. Irrigation pump set users and Bhagya Jyothi/Lutir Jyothi consumers have been spared from hike.

The tariff has been increased by 15 to 55 paise a unit for low tension (LT) commercial categories in BBMP. The tariff for LT industries has not been changed for the first 500 units, but they have to pay an additional 35 paise for the consumption between 501 and 1000 units and 30 paise for consumption above 1000 units.

There is an increase of 35 paise and 30 paise per unit for high tension (HT) and LT water supply respectively, while the street light tariff has gone up by 5 paise.

There is steep increase of 75 paise to one rupee per unit for temporary supply.

The increase in tariff for the second slab of consumption among HT industries has been kept lower than that of the first slab to promote power consumption by these high-paying categories. But the industries have cold-shouldered this sop, pointing out that they are already facing load shedding due to power shortage.

The tariff for HT industries has been increased by 50 paise for the consumption up to 1,00,000 kilowatt hours, while they have to pay an additional 30 paise for consumption beyond that.

The HT commercial categories such as shopping malls will have to bear with a steep hike of 75 to 80 paise, while HT residential apartments will have to pay 70 paise more.

Consumers of domestic lighting and heating installations in BBMP and other city corporation areas consuming over 100 units will have to pay more, ranging from 30 paise to Rs1.20 per unit.

In areas, urban local bodies consuming more than 100 units, the increase ranges from 20 paise to 70 paise per unit. But for installations under village panchayat areas consuming more than 100 units, the increase is only from 10 paise to 60 paise per unit.

Source - Domain-b

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