Power tariff may go up by 30 p/unit for all categories

Sources in the power sector said the tariff increase may be between 26 paise and 30 paise per unit for all categories.

Power utilities, the Karnataka Power Transmission Corporation Limited (KPTCL) and all the electricity supply companies (Escoms) of Bangalore, Mangalore, Gulbarga, Hubli and the Chamundeshwari Electricity Supply Company had sought a tariff revision of 51 paise per unit, while the KPTCL has asked for an increase of 11 paise per unit as transmission charges.

The power companies cited a common tariff revision of 51 paise stating that the revenue from the existing tariff is insufficient to meet the aggregate revenue requirement. Accordingly, Bescom has filed a revenue requirement of Rs 8,458.20 crore, Mescom Rs  1,562.38 crore, Hescom Rs 2,574.65 crore, while Gulbarga has filed a requirement of Rs 1,900.44 crore and Chescom has sought Rs 1,628.94 crore.

They had submitted that the power purchase cost was increasing each year and they were unable to meet the revenue requirement. The KPTCL had cited soaring inventory costs and increasing capital expenses for seeking a revision of the tariff.
The power utilities had called for objections from consumers through a notification in the second week of August. The KERC, which heard the matter in October, will issue its order on Wednesday.

Stiff opposition

The hearing had been met with stiff opposition from the Industrial community as well as the consumers’ forum and a few had even challenged the appointment of a member of the Commission, who was a director of law with the KPTCL.

The industrial community had submitted to the KERC that since the State was facing a drought-like situation, it should not consider the applications of the company. It had also submitted that the tariff revision would be valid only up to March 2010 as the new multi-year tariff begins during next year.

However, the State government had made it clear that an increase in power tariff was inevitable.