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Home News Power Sector News KERC increases power tariff again

KERC increases power tariff again

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KERCThe power tariff has been increased by an average 13 paise a unit by the Karnataka Electricity Regulatory Commission (KERC) as against the electricity supply companies' (escoms) plea for an increase of 73 paise a unit. The hike will be implemented with immediate effect (April 30), according to the tariff order issued  by the three-member regulatory body headed by M.R. Sreenivasa Murthy.

Though the average hike is 13 paise, the actual hike varies from 10 to 20 paise a unit. While the tariff for domestic consumers and irrigation pumpsets with a capacity of more than 10 hp has been increased by 10 paise a unit, the hike for other consumer categories is 20 paise a unit.

The commission has reduced the tariff by 50 paise a unit for mini-water supply schemes in villages as well as urban areas coming under the 'low-tension water supply' category, while there is no hike for big water supply schemes coming under the 'high-tension' category. IP sets with a capacity of less than 10 hp and those under the Bhagya Jyothi/Kutir Jyothi categories have also been spared.

The latest hike is the fourth in about two years. The previous revision was effected in October 2011, and the tariff was hiked by 28 paise a unit.

Mr. Murthy said the KERC had hiked the tariff by 3 per cent as against an increase of 7 per cent sought by all the five escoms in their tariff petitions filed on January 27.

With this hike, the five escoms will be able to raise additional revenue of Rs. 652 crore a year, he noted. The escoms had projected a revenue deficit of Rs. 2,538.75 crore and sought a hike of 73 paise a unit to bridge the gap. However, after examination of records, the KERC came to the conclusion that the revenue gap was only Rs. 652 crore after pegging the total annual requirement at Rs. 23,908 crore.

In the days to come, yet another marginal hike in power tariff is likely as the commission is set to determine a formula to pass on the burden of any increase in fuel price to consumers as per the direction from the Appellate Tribunal for Electricity. Mr. Murthy said the formula would be determined within a few months after eliciting the views of consumers.

Source - Hindu


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