There is another surprise in store for citizens of Karnataka a day before they know who will form the next government. The Karnataka Electricity Regulatory Commission (KERC) will announce a revision, if any, in tariffs on Monday.
The KERC had put off the announcement of revised tariffs until after the polls. However, it had clarified that the commission does not necessarily have to wait for the outcome of the elections to announce the new 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, sought hike ranging from 82 paise to ₹1.62 per unit for the financial year 2018-19. Bangalore Electricity Supply Company (Bescom) sought the least hike (82 paise) per unit, while Gulbarga Electricity Supply Company (Gescom) asked for the highest (₹1.62).
Following this, public hearings held in February saw a large number of citizens, industry representatives and consumer groups raising objections to the proposal. At the public hearing for Bescom consumers, citizens asked the power utility to improve efficiency, power supply quality, regularise unauthorised irrigation pumpsets, and get their accounts audited by recognised chartered accountants instead of seeking power hikes.
Last year, the KERC allowed a hike of an average 8% in tariff for 2017-18, against the 25% increase the Escoms had sought. The average tariff increase was 48 paise per unit, ranging from 15 paise to 50 paise per unit, for all categories. The hike the Escoms had asked for was ₹1.48 per unit.
Among the justifications given by the commission for the hike included covering last year’s deficit, which was a result of the breakdown of the Sharavathi Hydro Power Station the year before, owing to which low cost hydro electric power was not available and Escoms had to depend on thermal power. The KERC had also mentioned increase in power purchase cost for 2017-18 owing to increase in fuel cost of thermal power plants.
To reduce consumers’ burden, KERC allowed for the FAC to be collected at an average increase of 5 paise per unit, with which the hike would add up to 53 paise per unit.
The year before that, the KERC announced a hike in tariff by an average 9%, which amounted to a 48 paise average hike. The increase sought was ₹1.02 per unit.
