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SHOCKING! Karnataka increases Power Tariff by 8%

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[vc_row][vc_column][vc_column_text]In yet another upward tariff revision, the Karnataka Electricity Regulatory Commission (KERC) has allowed an average tariff increase of 53 paise per unit (ranging from 20 paise to 55 paise per unit, including fuel adjustment charges of 5 paise per unit) for all the categories of consumers.

The Commission has also allowed a marginal increase in fixed cost in the range of Rs 5 per KW/HP/KVA to Rs 20 per KW/HP/KVA on all the LT & HT consumers. The overall increase in tariff is 8 per cent as against 25 per cent increase sought by the Escoms – Bescom, Mescom, Cesc, Hescom, Gescom and Hukeri RECS.

Revenue gap According to Sri Shankaralinge Gowda, Chairman, KERC, the tariff increase was necessitated by the revenue gap of Rs 2,296 crore in FY16, which accounted for about 42 paise per unit. This is on account of increase in power purchase costs.

The Escoms had sought a uniform tariff increase of Rs 1.48 per unit for all categories. They also sought approval for collection of fuel adjustment charges (FAC) of 22 paise per unit to be collected during April-June, 2017.
Expressing his disappointment at the hike in the power tariff, PIA President Sri R. Krishnamurthy, said the charges in the BESCOM area has been escalated from 15 ps to 50 ps and this would sound the death knell of many micro and small scale enterprises in Peenya and surrounding industrial areas.

9“On the one hand we are faced with scheduled and unscheduled power cuts, and on the other hand, we are being forced to pay more for even this unreliable supply of power, both in terms of quantity and quality,” said a shocked PIA President Sri R.Krishnamurthy. “It is a double whammy which will have a telling effect on the MSMEs in Peenya. The Government should not be surprised if this leads to a significant shutdown of small enterprises. If such an eventuality happens, let it remember that they have only themselves to blame and also, they had ignored all the previous warning from industry bodies like PIA,” he summed up in agony.

Domestic charges
In Bescom areas, the fixed charges have been increased in the range of Rs 5/KW to Rs 10/KW for domestic category. KERC has granted the Bescoms’ plea for increase in demand charges and decrease in energy charges for HT consumers, besides introducing “telescopic tariff” for domestic consumers.
In Bescom urban areas, three additional slabs have been created. For consumption of 201-300 units, the tariff is increased from Rs 6.90 to Rs 7.30 per unit. For consumption of 301-400 units, it is up from Rs 6.90 to Rs 7.35 and for consumption above 400 units, from Rs 6.90 to Rs 7.40 per unit.

In Bescom semi-urban and rural areas, two additional slabs have been introduced. For consumption of 201-300 units, the tariff is increased from Rs 6.40 to Rs 6.80 per unit and for consumption above 300 units the increase is from Rs 6.40 to Rs 6.85 per unit.

In the rest of the state, for domestic consumers in urban areas, the tariff for monthly consumption of up to 30 units is increased from Rs 3 per unit to Rs 3.25 per unit and for consumption between 31 and 100 units the tariff is increased from Rs 4.40 per unit to Rs 4.70 per unit.

The tariff for monthly consumption of 101-200 units is increased from Rs 5.90 to Rs 6.25 per unit. The tariff for monthly consumption of above 200 units is increased from Rs 6.90 to Rs 7.30 per unit.

For the domestic consumers in rural areas, the tariff for monthly consumption of up to 30 units is up from Rs 2.90to Rs 3.15 per unit and for consumption between 31 and 100 units, from Rs 4.10 per unit to Rs 4.40.

The tariff for monthly consumption of 101-200 units is increased from Rs 5.60 to Rs 5.95 and for those above 200 units, from Rs 6.40 to Rs 6.80 per unit.[/vc_column_text][/vc_column][/vc_row]

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