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Wednesday 10 February 2010
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Tariff to go up by 40 p/unit in B’lore from Dec ; AEH users hardest hit
Consumers get ‘power’ shock
Bangalore: Nov 25, DHNS:

Delivering a power shock to electricity consumers across the State, the Karnataka Electricity Regulatory Commission (KERC) on Wednesday announced a massive 40 paise hike for every unit of power consumed in Bangalore and 34 paise hike for the rest of the State.


The new tariff will come into effect on December 1.
It is one of KERC’s highest tariff revisions so far announced in response to applications by the power utilities.

The revision has come as a rude shock to all the sectors. The KERC approved the tariff revision by the five Electricity Supply Companies of Bangalore, Chamundeshwari, Mangalore, Hubli and Gulbarga for the year 2009- 2010, following their application dated June 30, 2009.

The companies had sought a uniform increase of Rs 51 paise per unit, including the demand for an 11 paise hike from the Karnataka Power Transmission Corporation Limited (KPTCL),  to meet their claimed revenue gap of Rs 3,323.55 crore after subsidy. But a three-member committee comprising Chairman K P Pandey, K Srinivasa Rao and Vishwanath Hiremath allowed a differential tariff for each company with an average of 34.16 paise.

Range of hike
Accordingly, the Bangalore Electricity Supply Company (Bescom), being the largest consumer of power in the State, has been allowed an increase of 40.11 paise per unit of power.

The Mangalore Electricity Supply Company (Mescom) has been allowed a hike of 24.89 paise, while for Chamundeshwari Electricity Supply Company (Chescom) the increase is 24.90 paise per unit.

The tariff revision for Hubli Electricity Supply Company (Hescom) is 24.87 paise, while Gulbarga Electricity Supply Company(Gescom) gets the second highest tariff revision of 26.57 paise.  

The domestic consumers are the worst hit by the tariff hike, since the AEH consumers will have to pay a tariff ranging from 30 paise to Rs 1.20 paise more per unit in the BBMP and other corporation areas.

Those in urban local bodies will have to pay between 20 paise and 70 paise and for those in rural areas, the hike is between 10 paise and 60 paise per unit. However, there is no change in the tariff for the first 100 units consumed.
The average cost of supply for each company has been determined as Rs 4.21 for Bescom, Rs 4.05 for Mescom, Rs 4.18 for Chescom, Rs 4.28 for Hescom and Rs 3.95 for Gescom.          

Though there is no change in the tariff for irrigation pump sets above 10hp, the commission has directed the companies to meet the uncovered revenue gap of Rs 1,348.35 crore  through additional subsidy.
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 User Comments
[ Post Comments ]  
By: A.V.A
On: 26 Nov 2009 12:27 pm

Paying up is a must, we should not expect anything for free, but the amount of corruption and revenue leakage has to stop and politicians and bureaucrats involved in corruption should be executed after a proper trial. Once the citizens get what they pay for then and only then true law and order will prevail. We shouldnt blame the ruling govts for such decisions, like they say the light of the stars which we see today started a few light years ago, likewise the loss in the public revenue we see today started a few generations ago, and we have to start now to plug is seriously,

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By: funda
On: 26 Nov 2009 10:16 am

Corrupt BJP needs to fund its politicians and other cowardly activities by levying these expenses on the general public. Next election should be judgement day for the BJP and its goondas.

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By: Sandya
On: 26 Nov 2009 07:40 am

Atrocious. Result of incompetency and poor governance. On one side, there is power scarcity and on the other side, this sort of hikes? Is it a Government for the public or for the ill-gotten moneyed and filthily rich politicians.

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By: V. Kumar
On: 26 Nov 2009 07:02 am

This hike is due to the usual governmental incompetence in generating electricity efficiently. Privatize it, and the common man will see his basic right delivered to him effectively.

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By: Vikas
On: 26 Nov 2009 09:23 am

Things will be worse if you privitize the power utilities. The tariff will go up to Rs. 10-12 per unit from the present Rs.4-5 per unit. However on the plus side corruption will be eliminated (hopefully) and customer service will be better (hopefully always with a smile).

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By: Manjunath
On: 26 Nov 2009 06:16 pm

Mr. Vikas. Take the highly effective electricity production and distribution in Mumbai. Are its people unable to purchase it or living in darkness? Most probably, the inefficient power projects owned by the Karnataka government is producing electricity at a cost of maybe Rs.20 a unit or more for all we know.

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