The Hindu : Front Page : Escoms to seek 51 paise raise in tariff

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Tuesday, Jun 30, 2009
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Escoms to seek 51 paise raise in tariff

B. S. Satish Kumar

BANGALORE: The five Electricity Supplying Companies (Escoms) in the state have decided to seek a power tariff increase of 51 paise per unit from the State power regulator on Tuesday. The quantum of increase to be sought from the Karnataka Electricity Regulatory Commission (KERC) was finalised on Monday by the high-level committee of officials constituted by the Government.

According to sources, the Escoms hope to net Rs. 1,800 crore to Rs. 2,000 crore from the proposed increase to bridge their combined revenue deficit. But even then it would not be possible to fully bridge the deficit which stands at Rs. 3,900 crore – highest deficit ever in Karnataka’s power sector.

In terms of percentage, the proposed increase will work out to 20 per cent over the present tariff.

The proposal is said to have covered all the consumer categories. However, the free power to irrigation pumpsets and subsidised supply to Bhagya Jyothi and Kutir Jyothi consumers is expected to continue as the Government has announced subsidy to these categories.

The Escoms can only make a proposal for tariff increase before the KERC. This three-member quasi judicial body will take a final decision on whether to increase the tariff and the quantum of increase to be allowed after examining various issues and also eliciting views of Escoms, experts and consumers through public hearings.

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