Costlier coal fuels another power tariff hike in Karnataka

Electricity charges in Karnataka will go up once again starting from July 1 for a period of six months. A consumer using 100 units per month will have to shell out an additional Rs 19 to Rs 31 depending on the supplying company.

The Karnataka Electricity Regulatory Commission (KERC) has approved the proposal by electricity supplying companies (escoms) to recover the money spent on increased fuel costs in the last two quarters of 2021-22. Bescom consumers will shell out 31 paise/unit, followed by Hescom (27), Gescom (26), Mescom (21) and CESC (19).

The increased tariff will apply till December 31.

The increase in charges comes on top of the annual tariff hike which came into effect from April 1. Due to the volatility of fuel prices, the KERC has been issuing interim tariff hike orders for limited periods. "In Bescom, this is the biggest tariff hike linked to fuel cost adjustment. This is owing to coal shortage and the crisis suffered over the last one year. This will be a uniform hike for all category of consumers," an official explained.

In its order, the KERC said there was an increase in the variable cost of thermal stations, ranging from 37 paise to 49 paise per unit. As a result, the overall cost incurred by escoms in purchasing power increased by up to 29 paise/unit.

Asked about the steep hike, KERC Chairman P Ravi Kumar said the recovery of cost was important considering the losses suffered by the escoms. "It's a temporary hike which is tied to the steep increase in coal prices. Once the recovery is complete, the tariff will be rolled back (to the present status)," he said.

Officials also said that the increase appears to be high due to the KERC's decision to effect tariff hikes once in six months instead of every quarter. "If it was divided between two quarters, it would not have seemed like a big amount," an official said.

From April, the monthly power bill of a household consuming 50 units went up from Rs 523 to Rs 545 while those consuming 100 units started paying in four digits as the charges increased from Rs 990 to Rs 1,015.

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