Another shocker awaits power consumers in State

Another shocker awaits power consumers in State

KPTCL plans to hike tariff by additional 11 paise per unit

Consumers are already objecting to the proposed tariff revision, and industries are seeking a relief, citing natural calamity  as a reason. Not many are aware of the burden in store for them. as the KPTCL too, along with the Electricity Supply Companies (Escoms) has filed its ERC for tariff revision way back in June.

The KPTCL, in its Expected Revenue for Consumption (ERC) for the year 2009- 2010, has sought 29.64 paise as transmission charges per unit, as against the existing 19.42 paise per unit.

Interestingly, the power supply companies have not raised any objections to the KPTCL’s proposal, despite the fact that they will be affected, and the same will be now passed on to the consumers.

The KPTCL has submitted that its revenue requirement for the financial year 2010 is Rs 1332.09 crore. It says that 42,629.85 million units of energy will be transmitted. The KPTCL points out that if the existing rate of revenue with the present transmission charges fetches it Rs 840.87 crores, it will lead to a revenue deficit of 422.68 crore rupees.

Seeking tariff revision under Sections 61, 62 and 64 of Electricity Act - 2003 and Multi-Year Tariff (MYT) regulations under the Karnataka Electricity Regulatory Commission (KERC) Act -2006, the KPTCL has sought an increase of about 50 percent.

The KPTCL, under various sections and regulations, can collect transmission charges from the companies. The KERC will examine and give its consent for an increase in tariff. However, the only respite is that KPTCL wants this proposed tariff to be brought into effect in the next fiscal. KPTCL, in 2006, had sought revision of transmission charges.
Following the KERC order, the Corporation challenged it before the Central Appellate Tribunal (CAT). The matter is now pending before Supreme Court following an appeal by KERC.