Power shock: Price hike likely from July 1

Bengaluru: The state government is expected to revise the power tariff from July 1. Reportedly the hike will result in consumers having to shell out an additional Rs 19 to 31 for using 100 units of electricity. This decision will be coming into effect in the wake of a shortage in coal supplies.

As per the reports, this hike is observed based on the demands of the Karnataka Electricity Regulatory Commission (KERC), pending for the past two years. Various district electrical boards too had come in support of the demands of KERC. Over the past couple of months, the different electricity boards had pooled additional funds to procure coal. With this regard, the KERC has now decided to recover the additional expenditure from the consumers. This recovery will be applicable only to Special Economic Zones (SEZs)

The rates are as follows (paisa per unit):

• BESCOM– 31
• MESCOM – 21
• CESC – 19
• HESCOM – 27
• GESCOM – 26

Speaking to the media, KERC president P Ravikumar has said that the price variation was temporary and that the situation would be back to normal, once the coal supplies get back on track.

Meanwhile, to balance the expenditure incurred by the electricity boards, the KERC has given a time from July 1 to December 31.

It can be noted that, earlier in the month of April, KERC was expected to have a meeting with the concerned electrical boards on the price hike. The Bangalore Electricity Supply Company Limited (BESCOM) had sought to increase the tariff by around Rs 1.5 per unit. The state Power Minister Sunil Kumar had also hinted of a price hike was inevitable as there were pending bills of certain departments amounting to Rs 16000 cr towards the electric supply companies.