Electricity tariffs hiked in Karnataka

Key takeaways from the press meet by KERC Chairman on tariff revision.

KARNATAKA - BENGALURU - 30/03/2016 : Power line and Transformer, in Bengaluru on March 30, 2016. Karnataka Electricity Regulatory Commission (KERC) today announces a nine per cent increase in tariff across all escoms, comming as a shocker… even as the state is reeling under power shortage, the electricity tariff has been increased by the KERC. Photo K Murali Kumar.

The Karnataka Electricity Regulatory Commission (KERC) on Monday announced revision of tariffs. The revised tariffs will be applicable from the start of the new financial year i.e., April 1.

The five electricity supply companies (Escoms), in their tariff petitions submitted last year, had sought hike ranging from 82 paise to ₹1.62 per unit for the financial year 2018-19.

Here are the key takeaways:

The KERC has announced a 5.93% increase for Bangalore Electricity Supply Company (Bescom) against the 14% it had asked for.

The average increase for Bengalureans would be 25 paise as against 82 paise Bescom had sought for.

The overall hike for the five escoms is around 6%, which is between 20 paise and 60 paise.

Concessional reforms have been announced for certain categories of consumers. The tariff for the BMRCL has been reduced by Re. 1 per unit. Earlier, BMRCL was charged around Rs. 6 per unit.

To give a push to electrification of railway tracks, the KERC has reduced tariff by 40 paise per unit across the State.

The KERC has fixed Rs. 4.85 per unit as tariff for charging electric vehicles.

"Those who want to start electric vehicle charging stations need not get license from the Commission. In other cases, whoever sells Electricity has to get license from KERC,"  Chairman M.K. Shankarlinge Gowda said.

In a bid to stagger power usage and better grid management, the KERC has announced a concession of Rs. 2 per unit to industrial consumers if they consume power between 10 pm and 6 am. Escoms usually see peak power consumption between 6 am and 10 am and 6 pm and 10 pm.

For effluent and sewage treatment plants, those in domestic premises will be charged domestic tariffs, those in industrial will be charged industrial tariffs.

With solar power generation increasing, escoms will have to provide power for six hours overall to farmers, three hours each during day and night, until October.

"After October we will review this and we expect to be able to give a direction that they should be given six hours power only during day time," Mr. Gowda said. This means from November, farmers could get power supply between 10 am and 4 pm.

The transmission and distribution losses for the state's escoms is between 11 and 17%, with mesom having the least and gescom having the highest. The state's average stands at 17.68%.