Biggest hike in 10 years

Daijiworld Media Network - Bengaluru (SP)

Bengaluru, Mar 31: Karnataka Electricity Regulatory Commission (KERC) has given its nod to electricity supply companies for increasing power tariff by an average of nine percent. The increase now permitted varies between 15 paise per unit for consumers enjoying power at concessional rates, and 50 paise per unit for some other consumers. The new rates are effective from April 1 this year.

This was announced by chairman of KERC, M K Shankaralinge Gowda, at a press conference held in his office on Wednesday March 30. He said that if residential and commercial consumers alone are considered, the average increase in the tariff works out to 30 to 35 paise per unit.

Power tariff has been allowed to be increased for all the consumers including irrigation pump sets, people with connections under Bhagyajyothi, Kutteerajyoti etc. If all the consumers are pooled together, the average increase works out to 29 paise per unit, which happens to be the highest hike permitted during the last decade. The increase has been considerable for high tension consumers.

Shankaralinge Gowda said that educational institutions and hospitals located in urban areas and falling under low tension category will pay Rs 6.25 for the first 200 units and Rs 7.45 for consumption over this limit. For hospitals, other hospitals run by trusts, and government educational institutions and aided educational institutions grouped under high tension category will pay Rs 6 per unit for the first one lac units of power, and Rs 6.50 per unit thereafter.

The power supply companies had approached KERC with a proposal to increase power tariff by Rs 1.02 per unit. After pooling public opinion by holding sittings at various districts and taking into consideration various aspects which contribute to cost escalation, the commission has agreed to the demand partially.

KERC has also permitted electricity supply companies to effect an increase of Rs 5 per KV under fixed charge. KERC chairman said that the increase permitted now is nominal, which had to be done in view of increase in government cess on coal, recovery of regulatory assets amounting to Rs 1,105 crore that cannot be continued to be deferred as per central government's policy, and shutting down of production at Sharavathi hydro power station.