KERC will announce revision in tariffs today

Bengaluru: The Karnataka Electricity Regulatory Commission (KERC) will announce a revision in tariffs on Monday. The revised tariffs will be applicable from the beginning of the next financial year that is April 1. In their tariff petitions submitted last year, the five electricity supply companies (Escoms) sought a hike in the price of electricity 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) sought the highest (Rs. 1.62).

In February, the petition and its proposal received objections from the public, industry representatives and consumer groups. At the public hearing for Bescom consumers, citizens demanded improved efficiency and quality of power supply, regularising unauthorised irrigation pumpsets, instead of power hikes.

Last year, the KERC had allowed a hike of an average 8% in tariff for 2017-18, against the 25% increase that the Escoms had sought. The average tariff was 48 paise per unit, against the requested Rs. 1.48 per unit. The commission had said that the breakdown of the Sharavathi Hydro Power Station the year before had created problems in the availability of low cost hydro electric power. The Escoms had to depend on thermal power for generating electricity, which increased the power purchase cost in 2017-18 because of increase in fuel cost of thermal power plants. The KERC had allowed for the FAC to be collected at an average increase of 5 paise per unit then.