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Home News Power Sector News KPTCL and the five Escoms approaches KERC for tariff hike

KPTCL and the five Escoms approaches KERC for tariff hike

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KERCKPTCL and the five Escoms have approached the Karnataka Electricity Regulatory Commission (KERC) on August 13 with a proposal for yet another tariff hike of 75p per unit. The 75p hike proposed by the Escoms includes the 10 ps hike proposed by the KPTCL. It was just last November that KPTCL and Escoms proposed a tariff hike of 51 p, while the KERC approved only a 40 p hike per unit. KERC may or may not go through with this proposed hike, but one thing is for sure - consumers are anything but amused.

Not only has the BJP government not fulfilled its promise of 24 hours of quality power supply, it has devised "ill conceived schemes" like Bhagya Jyothi, Niranthara Jyothi and Kuteera Jyothi, where ultimately consumers are being made to pay a price!

Official sources have confirmed that the proposed tariff hike includes the cost incurred by KPTCL for additional purchase of power it has made this year, the department's capital expenditure, the amount payable for the 22 per cent transmission and distribution losses' and the amount that the government has been unable to pay to the agricultural sector. "A gap of Rs 4306 crore has to be bridged. And the government is willing to pay the agricultural subsidy of only Rs 2406 crore. It has been proposed to collect the remaining amount from the consumers, where the consumers will pay half the amount, and the government, the other half," said a senior official.

Last year, while the state agreed to bear the cost of Rs 2100 as subsidy to the agricultural sector, KERC directed the government to pay the entire subsidy amount of Rs 3468 crore. This year the state has appealed before the KERC to reduce the burden and make the consumers bear the cost. KERC chairman M R Srinivas Murthy told the Deccan Chronicle that it was too soon to indicate whether this proposal would come through. "The Escoms and KPTCL are already late in their submission of petition for this financial year," he added.

Source- Deccan Herald


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