Bangalore: Power Tariff Hike - Govt Gives Green Signal


Daijiworld Media Network - Bangalore (SP)

Bangalore, Jul 1: The state government has given its go ahead to Karnataka Power Transmission Corporation Limited and the electric supply companies in the state to submit proposals to hike power tariffs, before Karnataka Electricity Regulatory Commission (KERC). Energy minister K S Eshwarappa informed at a press conference here on Tuesday June 30, that these companies will propose to the KREC, seeking a 20% hike on the current tariff, which will be an addition of 51 paise per each unit over the current rates. The proposals want to increase the tariffs on the pro-rata basis to all the categories of consumers, home, commercial establishments and industries.

As the KERC, after receipt of the proposals, has to invite objections from the people and organizations, hold a hearing and come out with a final decision, the increased rates might come into effect from January next year, he explained. Justifying the increase, he said that the neighbouring states have already affected the revision and that the proposal to increase the rates is being put up after a gap of six years. The last increase was just two percent, he reminded.

Energy department chief secretary Jairaj said, that considering the actual cost, the increase should have been Rs 1.13 per unit, but the same has been scaled down, considering the problems the consumers will face. He hoped that KERC will give its approval to the proposals in their current form, as the department has been able to peg the transmission and distribution loses to 18% from the earlier 27%. "We will place everything, including schemes like free power to agricultural pumpsets, subsidies, schemes like Nirantara Jyoti etc before KERC," he added.

KERC chairman K P Pandey in the meantime, has said that it is the duty of the KERC to come to the rescue of the electricity supply companies in times of crisis, if the reservoirs do not get enough water inflow during the monsoon. The government has been spending around Rs 6,500 crore annually to supply power to people, and has incurred Rs 3,000 crore for buying power from outside. The Commission will take into consideration all aspects before coming out with a decision, he said.

Eshwarappa also said that the government will make an official announcement about the quantum of load shedding in a couple of days, taking into account the gloomy situation in hydel power generation centres.

  

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Comment on this article

  • Balakrishna Shetty, Yellur, Udupi/Dubai

    Thu, Jul 02 2009

    Despite the situation it would not call for competitive bidding for the projects like in the case of Nagarjuna but yet would govt guarantees and escrow covers guaranteeing their borrowing. When cost of generation is 1.20 to 1.60 paise per unit from the projects through bidding all over the country our govt would buy from Nagarjuna at almost double that price and they now gave NOC for 1500mw as against the earlier 1015mw. Anti-corruption wing of CBI seems to have searched the previous power secretary Dilip Rau''s house. They need to search more houses.

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  • shahnawaz kukkikatte, dubai/udupi

    Wed, Jul 01 2009

    This is one of the achievements of BJP in karnataka. In the budget, Yeddi has promised no power cuts, ecomony of power tarrif. In whole of India, power is expensive in Karnataka. Even in Delhi and Mumbai, where GDP and Per capita income is much higher than ours, electricity to consumers costs less. This is nothing but hands in gloves operation similar to operation kamala, give and take. The result, power price hike to consumer and poor man has to shell out more.

    Nobody across the street understands and only sing praise and mantra of BJP. BJP has failed to give basic amneties to its citizens at affordable prices. Is our State better than others when compared to power generation and costing???? Whats the opposition is doing? Just warming the chairs and collecting their salary and perks?? That too all tax payers'' money.

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Title: Bangalore: Power Tariff Hike - Govt Gives Green Signal



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