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Home News Power Sector News KERC approves 9% hike in power tariff for FY17- 8,838 Crore subsidy

KERC approves 9% hike in power tariff for FY17- 8,838 Crore subsidy

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KERCKarnataka Electricity Regulatory Commission (KERC) has recommended a 9 per cent power tariff hike by Escoms (Bescom, Mescom, CESC, Hescom, Gescom & Hukeri RECS) in the State.

Announcing the commission's tariff hike, KERC Chairman M K Shankaralinge Gowda said, "The Commission has ordered for 9 per cent power tariff hike for all categories of consumers. This is against 18 to 19 per cent requested by all Escoms."

"As against uniform tariff increase of ₹1.02 per unit proposed by the Escoms for all categories of consumers, we have approved for an average hike of 48 paise per unit (ie ranging from 15 paise to 50 paise per unit ) for consumers which includes urban, rural residential, irrigation pump sets and Bhagya Jyothi / Kuteer Jyothi," said Gowda.

In the Annual Performance Review of Escoms for FY15, the Commission has determined a surplus in revenue of ₹331 crore. Together with this surplus and the regulatory asset of ₹1,105 crore, the total revenue gap for FY17 is ₹2,586 crore.

Domestic Consumers (Urban): For the domestic consumers in urban areas, the tariff for monthly consumption of up to 30 units is increased from ₹2.70 per unit to ₹3 per unit and for consumption between 31 and 100 units; the tariff is increased from ₹4 per unit to ₹4.40 per unit.

The tariff for monthly consumption of 100-200 units is increased from ₹5.40 to ₹5.90 per unit and for consumption above 200 units; the tariff is increased from ₹6.40 to ₹6.90 per unit.

Domestic consumers (rural): The tariff for monthly consumption of up to 30 units is increased from ₹2.60 per unit to ₹2.90 per unit and for consumption between 31 and 100 units the tariff is increased from ₹3.70 per unit to ₹4.10 per unit.

The tariff for monthly consumption of 100-200 units is increased from ₹5.10 to ₹5.60 per unit and for consumption above 200 units per month the tariff is increased from ₹5.90 to ₹ 6.40 per unit.

The ESCOMs have claimed a subsidy of Rs 8,838 crore for 2016-17 as against Rs 7,197 crore for 2015-16. We don't believe this, so we have ordered a GPS-based survey of all IP sets starting April 1. They have to establish that all these IP sets are working and drawing as much power as they claim. We believe at least three to four lakh are not functional. The survey will establish the actual situation. If the IP sets are not working, then the subsidy amount will be cut accordingly," the KERC chairman said.

The ESCOMS claim to be supplying power to 25.90 lakh pumpsets, inclusive of 10 HP sets, and 29 lakh Bhagya Jyothi/Kutira Jyothi households. They estimate the total consumption of these sets is about 19,687 million units per year and 312 million units for Bhagya Jyothi/Kutira Jyothi households.

This is the first time ever that KERC has passed such an order and an attempt will be made to calculate exactly how many IP sets are drawing power.

The Commission has also extended the promotional tariff of Rs 4.50 per unit (now Rs 4) for local bodies installing energy efficient LED/induction lamp lighting for streetlight installations.

The KERC has also specified that it has passed an order that if the promotional tariff is to be availed, new streetlights with low mast will have to have LED lights. Those with high mast will have to have induction lamps. Replacement lights also need LED or induction if they need to benefit from promotional tariffs.

 

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