Consumers get 'power' shock

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.