KERC may clip Escoms wings to achieve ‘moderate’ tariffs

Regulations make it mandatory for electricity supply companies to adopt energy-efficient measures

January 20, 2015 12:00 am | Updated 09:38 am IST - Bengaluru:

Power consumers may not be in for a shocker with regard to the huge tariff hikes from next year, if the Karnataka Electricity Regulatory Commission (KERC) has its way.

A plan to clip the wings of the electricity supply companies (Escoms), who seek tariff hikes citing increasing costs in short-term power purchases, is in the pipeline. The commission has drafted the ‘KERC (Demand Side Management) Regulations 2015’ which mandates Escoms to implement energy-efficient measures.

While the KERC has, in the past, advised Escoms to adopt energy-efficient measures, the new regulations will make it mandatory for the power utilities to implement them. The KERC is expected to call for objections and hold a public hearing after which the regulations will be implemented.

Escoms have sought a tariff hike of 80 paise per unit for all consumer categories for the coming financial year.

Creation of fund

KERC Chairman M.R. Srinivasa Murthy told The Hindu that a ‘State Energy Conservation Fund’ would be created to take up activities to reduce consumption of electricity without actually sacrificing the needs of power consumers. This will be done through various conservation programmes, including efficient load management.

“We want to initiate the establishment of a fund which Escoms can use at their own level to reduce consumption without decreasing usage. By adopting energy efficiency, Escoms will reduce the need for buying expensive electricity. The cost of electricity has been progressively increasing as less expensive sources are depleting. The Escoms have been buying expensive power. In the long run, there may be moderate tariffs,” Mr. Murthy said.

Terming it a good move, Y.G. Muralidhar, convener, Consumer Rights Education and Awareness Trust, said implementation was crucial as the Escoms would have to procure energy efficiency equipment.

Bangalore Electricity Supply Company (Bescom) Managing Director Pankaj Kumar Pandey said the power utility had already started implementing some of the measures specified and would be able to follow the regulations without difficulty.

L. Lakshmipathy, DGM-Demand Side Management, Bescom, said that a consumer survey to study consumption pattern was under way and would be completed by March. Bescom’s corporate office was being converted into a ‘green building’, he said.

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