Karnataka

No need for public hearing on amount paid to TBPCL, says KERC

Controversy over the amount paid to Tannir Bhavi Power Company Ltd. (TBPCL), which is now being proposed to be recovered from consumers, has taken a new twist with the Karnataka Electricity Regulatory Commission (KERC) ruling that there was no need for a public hearing on the issue.

This came up during the hearing of the truing up petition filed by Karnataka Power Transmission Corporation Ltd. (KPTCL), here on Thursday.

KERC chairperson Shambu Dayal Meena categorically refused a public hearing, though the objectors – Federation of Karnataka Chambers of Commerce and Industry (FKCCI) and D.S. Bhat – maintained that the exercise will have an effect on all categories of consumers by way of increase in power tariff.

When KERC shot down the demand for public hearing, the counsel representing FKCCI and Mr. Bhat urged the commission to make the objections filed by them public by putting them online, along with the KPTCL petition. Meanwhile, Bangalore Electricity Supply Company also filed its objections. The counsel representing other four electricity supply companies sought time and the matter was posted for further hearing to November 5.

According to FKCCI, approximately ₹1,770 crore, including interest of 12% per annum for 13 years, is being proposed to be recovered from consumers by way of tariff adjustments.

Since 2001 to 2005-06, the KERC had only recorded the surplus or deficit shown by KPTCL. However, adjustments in tariff did not happen. Later, KERC found that by virtue of truing up, there would be a surplus amount to be returned to the consumers through tariff adjustments. Aggrieved by the KERC order, KPTCL filed an appeal before the Appellate Tribunal for Electricity claiming there was no surplus. The tribunal by its order found fault with KERC’s logic in determining surplus and remitted back the matter to the commission with an observation that KERC can’t resort to truing up exercise for the second time. This matter went up to the Supreme Court and the appeals filed by FKCCI and KERC were dismissed. Later in 2018, the KPTCL filed a petition for truing up, which is now being heard by KERC.

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Printable version | May 31, 2020 11:47:39 AM | https://www.thehindu.com/news/national/karnataka/no-need-for-public-hearing-on-amount-paid-to-tbpcl-says-kerc/article29650324.ece

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