Electricity tariff hiked by average 30 paise in Karnataka

The ESCOMs had sought an average increase of 135 paise per unit accounting for 17.31 per cent increase

Electricity consumers in Bengaluru and the rest of Karnataka will have to shell out more as the Karnataka Electricity Regularity Commission (KERC) on Wednesday approved a hike in the tariff by an average of 30 paise per unit.

While the approved tariff is less than the average hike of Rs 1.35/unit sought by the five electricity distribution companies (Escoms), the higher tariff is set to add to the economic hardship to the poor who use less than 30 units per month while those using 30 to 100 units will see the bill remaining same or reduce slightly.

The 30 paise/unit average consists of a hike of Rs 15 in the fixed charge and 10 paise per unit hike. The revised tariff will come into effect starting from April 1, which means Escoms will collect the arrears in the bills of the coming months. Bescom said it will recover the two months' arrears in October and November, respectively.

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Essentially, domestic consumers in BBMP limits will see their fixed charge going up by Rs 15 each for the first KW and the additional KW. In addition to this, Bescom will collect consumption charge of Rs 4.10/unit instead of Rs 4/unit earlier.

Escoms have four slabs of tariffs where the per-unit price of electricity goes up as a household consumes more electricity. In BBMP limits, with the addition of 10 paise per unit, the price of electricity is Rs 4.10/unit for up to 50 units, Rs 5.55/unit for 50 to 100 units; Rs 7.10 for 100 to 200 units and Rs 8.15 for over 200 units.

Bescom officials said the commission's move to extend the first slab from 30 to 50 units, giving Bengaluru consumers an additional 20 units for Rs 4.10 and not at Rs 5.55 as per the previous slab structure, will benefit a majority of the households.

However, poor households that use less than 30 units per month will pay at least Rs 30 more due to the hike in fixed charges alone. For consumers who use 30 to 100 units, the reduced price for 31 to 50 units will offset the 10 paise increase in tariff.

Mescom, Cescom, Hescom and Gescom have different rates per unit for each slabs. Nevertheless, the uniform hike of 10 paise/unit applies to all. The rate of hike in fixed charges is same as that of Bescom.