Escoms cite high power-purchase cost to seek tariff revision

High costs involving purchase of power is the main reason cited by electricity supply companies (Escoms) to seek an increase in tariff by 80 paise a unit for the coming financial year.

This is despite the quantum of short-term purchases accounting for about 10 per cent of the total power purchased.

The Escoms had filed tariff revision petitions before the Karnataka Electricity Regulatory Commission (KERC) proposing a hike for all consumer categories. The State has seen six power tariff hikes in the last five years.

M.R. Sreenivasa Murthy, KERC Chairman, said the “prudent practice” was to have about 90 per cent of the power purchases on long-term basis.

“Last year, the short-term purchases were in the 10 per cent range and this year too, this is not expected to exceed,” he said. The Escoms had been cautioned by the KERC in 2012–13 when their short-term purchases had reached the 20 per cent range.

The revised tariff is expected to be come into effect on April 1 as per schedule after inviting objections from the public followed by public hearings. Last year, the revised tariff came into effect in May as the code of conduct for the Lok Sabha elections was in force.