If you think your electricity bill is already making a big dent in your monthly expenditure, there is more bad news in store. Bangalore Electricity Supply Company has sought an increase of Rs. 1.48 per unit for electricity tariffs for the next financial year in its petition filed to the Karnataka Electricity Regulatory Commission (KERC).
The tariff revision proposal for 2017–18 seeks a hike in the energy charges for its consumers to the tune of Rs. 1.48 per unit. This means that domestic consumers in urban local bodies, for example, will end up paying Rs. 4.48 per unit for the first 30 units they consume instead of Rs. 3 now, and up to Rs. 8.38 per unit if they consume more than 200 units. The fixed charges though will remain the same, except for industrial consumers.
Consumers have already been paying hefty bills for their electricity needs after the KERC allowed a steep increase in tariffs for 2016–17. The commission had granted an average increase of 48 paise per unit (ranging from 15 paise to 50 paise per unit) for different categories against the electricity supply companies’ uniform demand for an increase of Rs. 1.02 per unit. The overall increase was in the range of 9 per cent.
The tariff revision filed for 2017–18 exceeds previous petitions filed by the Escoms, who have, until this year, asked for hikes below Re. 1. Last year’s steep hike was allowed by the KERC citing, among other reasons, the breakdown of the Sharavathi Hydro Power Station which led to procurement of high-cost power.
Consumer rights activists are not taking kindly to the proposed hike. Y.G. Muralidhara, coordinator of the Karnataka Electricity Governance Network and member of the Central Consumer Protection Council, said it was not the hike that was the problem, but the quantum of it. “A hike is inevitable and no one will oppose a reasonable hike. But has something unusual happened this year that they are seeking such a steep hike? Are they procuring enough green energy, the cost of which has also come down? They should be allowed only to pass on the difference in power purchase cost to the consumer,” he said.
What’s new?
After being granted a hike in fixed charges for the ongoing financial year, Bangalore Electricity Supply Company (Bescom) is now seeking an increase in the fixed charges for its industrial consumers.
The Karnataka Electricity Regulatory Commission had allowed for an increase in fixed cost in the range of Rs. 5 to Rs. 10 per KW/HP/KVA on all LT and HT consumers in 2016–17.
Now, to retain its revenue-generating HT consumers, Bescom has proposed to increase the fixed monthly charge (Rs. 180 at present), while reducing the energy charges. Bescom officials said this year alone, 1,500 MU worth consumption from HT consumers had gone out of its grid.
“Many of our HT consumers are opting for open access, which is causing a loss in revenue for us,” an official added.
“We studied what the other States have to offer and learnt that Maharashtra, Tamil Nadu and Andhra Pradesh had a 33:67 ratio of fixed charges to energy charges, which we also want to adopt,” said an official, and added that the reduction in energy charges would have to be met with an increase in fixed charges to be “tariff neutral”.
Power situation
As for the power situation, officials said the State was in a comfortable position to meet with the increased demand that the summer season traditionally sees. Bescom officials said the State’s overall generation at present was around 8,500 to 9,000 MW. “We expect the peak demand to go up to 9,500 MW in March. This is why we are saving up on whatever hydel power we have despite the drought. In addition, we are also expecting around 500 MW from sugar companies at a lower tariff this time (Rs. 3.48 per unit), 1,200 MW from the southern grid, and 300 MW from the Maharashtra–Chikkodi line,” a senior official said.
