KERC to decide on power tariff hike soon

KERC to decide on power tariff hike soon

Consumers may now have to brace for power tariff revision as the Karnataka Electricity Regulatory Commission (KERC) is all set to pronounce its order pertaining to the revision. The KERC has completed hearing of objections of all the consumers.

“We have heard over 2,600 objections in the jurisdictions of all the electricity supply companies (Escoms). The orders will be out by the end of this month,” M R Sreenivasamurthy, chairman of KERC, told Deccan Herald.

Citing the purchase cost and revenue gap of Rs 2,200 crore, the Escoms have sought an increase of 70 paise per unit to plug the gap. In 2012, the Escoms had approached KERC, seeking an increase of 73 paise.

However, the commission allowed them an increase of 13 paise per unit for all the consumers.

The demand is likely to reach 62,000 million units in the near future. The companies have stated that with no capacity addition, there is no alternative to purchase of power. The power demand for 2012 was 50,000 million units.

Mangalore Electricity Supply Company (Mescom) topped the number of objections filed by consumers, with 2,158 objections (with affidavit) and 822 objections (without affidavit).

Surprisingly, Bangalore Electricity Supply Company (Bescom) has less objections (just 16), compared to Chamundeshwari Electricity Supply Company (Cesc) with 21 objections (seven without affidavits) and Hubli Electricity Supply Company (Hescom) with 17 objections by consumers. Gulbarga Electricity Supply Company (Gescom) has four objections.

The other factors on which they have sought the hike is system augmentation to ensure quality power and measures to bring down transmission and distribution (T&D) losses.

The companies were directed to bring down the T &D losses to 16 per cent in the earlier tariff order. This has now been reduced to 19 per cent.