Staff Reporter

Sum is fixed charges to be paid to Tanir Bavi Power Company Ltd.

Matter was referred to an arbitral tribunalTribunal allowed power company's claimKPTCL approached High Court after KERC disallowed its appeal to pass on the amount to consumersHigh Court remitted the matter to the KERC for reconsideration

Bangalore: The plea by Karnataka Power Transmission Corporation Ltd. (KPTCL) to pass on Rs. 720 crore to consumers has been rejected by the Karnataka Electricity Regulatory Commission (KERC).

The KERC on Thursday once again rejected the application by KPTCL and the electricity supply companies to pass on the amount, which is the cumulative additional fixed charges of Tanir Bavi Power Company Ltd. (TBPCL), to consumers. According to a press release, the proceedings were held as per the Karnataka High Court judgment of December 22.

KPTCL had earlier raised a dispute on the fixed charges payable to TBPCL. The matter was referred by KPTCL and TBPCL to an arbitral tribunal, which passed the order allowing fixed charges as per the claim of TBPCL, on May 19, 2003.

The release stated that on August 7, 2003, KPTCL accepted the award and filed an application before the KERC to allow the fixed charges as per the arbitral award to be passed on to consumers by way of tariff. However, the KERC had not allowed this claim in its tariff amendment order of December 12, 2003. KPTCL and the electricity supply companies later appealed to the High Court, which remitted the matter for reconsideration by the KERC within four months.

KERC members H.S. Subramanya and S.D. Ukkali passed the order. KERC Chairman K.P. Pandey did not participate in the proceedings, as he had dealt with the matter as Principal Secretary, Energy Department.

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