Burdened by the impact of the pandemic, citizens and industry bodies have slammed the move by the Bangalore Electricity Supply Company (Bescom), which proposed a hike in tariff for the upcoming financial year, at the public hearing organised by the Karnataka Electricity Regulatory Commission (KERC) here on Monday.
Bescom has sought an average hike of ₹1.39 per unit for FY 2021-22. In November 2020, the KERC had announced an increase in tariff by an average 40 paise per unit, but decided to make the new tariffs applicable from November instead of April given the circumstances.
Presenting its objections, KASSIA said the proposed revision would come within five months, ending up discouraging industries, and sought the KERC to continue the existing tariff for another year.
“The definition of fixed cost is the cost necessary to carry the investment and to replace the equipment when it is worn out. Fixed cost is based on the original cost of establishing the generating stations. The cost of machines reduces every year based on the depreciated cost of machines. Under any condition, the fixed cost should not be increased. Instead, it should be reduced based on the depreciation,” KASSIA has argued.
They also pointed out that Bescom should have clearly indicated the steps taken for improvement of efficiency since the date of previous order and earlier orders issued by the commission, indicating the efficiency gains which could be ultimately transferred to the consumers proportionately.
Terming the hike sought as ‘unjustified’ for small scale industries, they argued that they are subjected to load shedding and unscheduled interruptions, resulting in loss of man hours and production. “There is considerable scope for reduction in costs and improving efficiencies to set off the proposed additional expenditure by Bescom. Therefore, the present tariff revision petition should be rejected,” the KASSIA petition said.
FKCCI, which submitted a detailed petition against the proposed tariff revision, demanded for a separate special tariff category for MSME, and said the KERC should not allow any increase in fixed charges. “Our peak load demand is 13,000 MW, however our generation capacity is 30,000 MW. We have surplus power of 15,000 million units,” they said. FKCCI also alleged that there is a mismatch in the closing balance of KPTCL and opening balance of the five supply companies.
