Karnataka power panel slashes tariffs

Bengaluru: For the first time in more than a decade, the Karnataka Electricity Regulatory Commission (KERC) has announced "significant reduction" in energy charges for the 2024-25 financial year.

Though the Bescom and other electricity supply companies had sought to  increase tariffs to bridge the revenue gap, the KERC, after taking into account power purchase charges, sales, and the current state of power production, has decided to reduce the rates. 

Energy charges for High Tension (HT) industrial consumers will come down by 50 paise per unit, and for HT commercial consumers, the tariff will come down by 125 paise per unit. Power charges for Low Tension industrial installations will also come down by 100 paise.

Moreover, the order has some good news for residential consumers who have been left out of ‘Gruha Jyothi’, the state government’s free power scheme. Domestic consumers who use more than 100 units will see a reduction of 110 paise per unit in their power bills.

Now, Bescom consumers who consume over 100 units are being charged Rs 7 per unit. This will come down to Rs 5.9 per unit.  

Even though the commission in 2008 had slashed energy charges by an average of 50 paise, that order was not implemented owing to legal hurdles. 

In the process of rationalisation of tariff, the energy authority has also done away with the slab system, and going ahead, consumers will have only one slab for payment of energy charges.  

'Time of Day' for morning peak hours reintroduced

To ensure better management of available energy during the peak hours, the KERC has reintroduced Time of Day (ToD) charges for morning peak hours between 6 am and 9 am. "The state is struggling to meet the power demand during the peak hours and hence, we decided to introduce ToD for commercial and industrial consumers. Evening peak hour ToD charges are already in place and we have now introduced morning peak hour charges as well," a senior KERC official said. 

That apart, the order has cut down the Special Incentive Scheme (SIS) benefit from Rs 2 per unit to Re 1 per unit. SIS provides benefits for industrial and commercial consumers who consume power during the night hours. 

The authority has continued with many other subsidies that have been provided to promote renewable energy.