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Home News Power Sector News KERC lifts cap on short term power purchase

KERC lifts cap on short term power purchase

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KERCIn what can be viewed as an exigency measure to meet the rising power shortage, the Karnataka Electricity Regulatory Commission (KERC) has lifted the fixed price cap on short term power purchase for the months of April and May, it was announced at a special meeting by KERC chairman, MR Sreenivasa Murthy. KERC had earlier set a fixed rate of Rs 6 per kilowatt hour on short term purchases.

But as per its new directive the Power Company of Karnataka Limited can procure power upto 750 MW at any higher rate as well. KERC had held a highlevel meeting with the additional chief secretary (energy), the managing directors and officials of Escoms, Karnataka Power Corporation and the state transmission company.

Further in a bid to save power, KERC has asked the Escoms to take up demand side management measures, the reports of which have to be submitted to KERC every month.

The hearing of the tariff revision petition filed by the state government expressing its inability to pay the subsidy to the power supply utilities has been put off to May 13. Due to the absence of a counsel for the case, KERC put off the hearing.

The petition seeks revision of the November tariff order that asks the government to pay subsidy for free power supplied by the state utilities.

The government's petition is being seen as a hypocritical move as in the first place it goes on to provide free power saying it will pay subsidy, but now is backing out. Further, as per the Electricity Act, if the government wants to supply free power at reduced rate, it must pay the utility the subsidy amount in advance.

The High Court has directed KPTCL to file a counter on a contempt petition, for disobeying a court order regarding supply of uninterrupted power to the state’s farmers.

The court issued the directions to KPTCL after hearing a petition filed by city-based advocate GR Mohan.

On March 23, the High Court had directed KPTCL and the government to provide an additional two-hour power supply to farmers during summer, as well as for the students preparing for exams. The petitioner said that the state had failed to comply with the order and that civil contempt proceedings can be initiated against KPTCL.

KPTCL replied that it had complied with the court order. The hearing was adjourned and the bench demanded a reply in writing from KPTCL.

Source - Indian Express

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