The Hindu : Karnataka / Bangalore News : KERC reduces tariff for Gescom consumers

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Friday, Jan 18, 2008
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Karnataka

Karnataka - Bangalore

KERC reduces tariff for Gescom consumers

Special Correspondent

It will come into effect from February 1

Tariff reduced by
5 paise to 35 paise
a unit
Five districts come under Gescom jurisdiction

BANGALORE: Continuing its goodies to consumers, the Karnataka Electricity Regulatory Commission (KERC) on Thursday reduced the tariff for various categories of consumers of Gulbarga Electricity Supply Company (Gescom) by 5 paise to 35 paise a unit.

The reduction in tariff for the Gescom comes close on the heels of reducing the tariff for the Bescom consumers by 5 to 25 paise on January 11. The new tariff will come into effect from February 1 for Gescom which comprises five districts of Gulbarga, Bidar, Raichur, Koppal and Bellary.

But despite the reduction, the tariff for Gescom consumers is on a higher side when compared with their Bescom counterparts. The commission has introduced differential tariff system under which different tariff has been proposed for each ESCOM depending upon their performance.

Continuing its earlier trend of prescribing different tariffs for the consumers in urban and rural areas to make up for the difference in quality of supply, the three-member quasi judicial body, headed by former bureaucrat K. P. Pandey, reduced the tariff for domestic consumers in rural areas of Gescom by 5 to 20 paise per unit as against their urban counterparts whose tariff has been reduced by 10 paise a unit.

The good hydel reserves which have resulted in the additional availability of cheap hydel power have been cited as a reason for reducing the power tariff.

While the solar benefit has been increased from the present 40 paise a unit to 50 paise, the special incentive scheme for the High Tension consumers has been continued at a reduced rate of Rs. 3.55 per unit as against the earlier tariff of Rs 3.80 per unit.

Gescom had sought a tariff increase of 90 paise per unit for all the consumers barring Bhagya Jyothi, Kutir Jyothi and irrigation pump sets. With such a proposal, it wanted to raise additional revenue of Rs. 153.74 crore, leaving still a revenue deficit of Rs. 287.41 crore.

But the commission, which heard the views of consumers and experts, did not grant the hike. It also approved an annual revenue requirement of only Rs. 1,176.43 crore for 2007-08 as against the Gescom’s proposal of Rs. 1,758.52 crore. The major difference is in the matter of power purchase where the KERC approved only Rs. 889.16 crore as against Rs. 1,156.26 crore sought by Gescom.

When compared with Bescom, the Gescom tariff continues to be on a higher side for the next two years also as under the multi-year tariff regime, the KERC has prescribed an average power supply cost of Rs. 4.03 per unit for 2008-09 (Rs. 3.63 for Bescom) and Rs. 4.14 per unit for 2009-10 (Rs. 3.76 for Bescom).

The commission which undertook a truing up exercise of the financial data of the Gescom from 2002-03 to 2005-06 has found a surplus of Rs. 312.85 crore. This surplus amount has been adjusted by the commission for the next three year’s requirements.

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