Special Correspondent

KPTCL’s annual revenue requirement fixed at Rs. 780 crore

KPTCL had challenged the power regulator’s transmission tariff order

Slight increase may not have positive impact

on finances

BANGALORE: The Karnataka Electricity Regulatory Commission (KERC) on Monday modified the multi-year transmission tariff order issued by it in July 2007. The power regulator came out with a supplementary order to effect the modifications.

According to the modified order, a transmission tariff of 20.25 paise has been granted to the Karnataka Power Transmission Corporation Limited with retrospective effect for the financial year 2006-07 as against the present tariff of 19.42 paise.

Earlier, the KERC had prescribed a transmission tariff of 17.23 paise per unit for this period.

The KPTCL had challenged the power regulator’s transmission tariff order before the Appellate Tribunal for Electricity.

After hearing both the parties, the Tribunal had on December 4 expressed its view on each of the various aspects of the KERC’s order and given a six-week time for the KERC to implement them.

Accordingly, the KERC has now modified its order. In the modified order, the KERC has slightly increased the transmission tariff as well as the annual revenue requirement of the KPTCL.

For the year 2008-09, the KERC has now prescribed a transmission tariff of 18.84 paise a unit as against 17.48 paise allowed by it in the earlier order. But, the KPTCL had sought a tariff of 32.64 paise a unit for this period.

Similarly, for 2008-09, the Commission has prescribed a tariff of 19.73 paise (14.80 paise in the earlier order) as against 33.54 paise sought by the KPTCL.

For 2009-10, the Commission has allowed 20.74 paise (14.12 paise earlier) against 40.19 paise sought by the KPTCL.

Similarly, the KERC has approved an annual revenue requirement (ARR) of Rs. 780 crore for the KPTCL as against Rs. 1,352 crore sought by it for 2007-08.

In the earlier order, the KERC had allowed an ARR of Rs. 724 crore for this period. Similarly the Commission has approved an ARR of Rs. 889 crore and Rs. 1,022 crore respectively for 2008-09 and 2009-10 against Rs. 1,511 crore and Rs. 1,980 crore sought by the KPTCL. In the earlier order, the commission had allowed Rs. 889 crore and Rs. 1,022 crore for these years.

Reacting to the modified order, KPTCL Managing Director Bharatlal Meena said he was yet to study the details of the verdict.

However, he noted that a slight increase in the tariff might not have any positive impact on the finances of the KPTCL.

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