KERC proposes power tariff hike

Bengaluru: The Karnataka Electricity Regulatory Commission (KERC) has approved revision of electricity retail supply tariff for all the Electricity Supply Companies (ESCOMs) and Hukeri Rural Electricity Co-operative Society in the State for the Financial Year 2021 (1 April, 2020 to 31 March, 2021).

The Commission has approved an average increase in tariff by 40 paise (considering increase in demand and energy charges) per unit for FY 2020-21 with an average increase of 5.40%.

It has determined revised retail supply tariff for consumers of Mangalore Special Economic Zone (MSEZ) at Mangaluru and AEQUS SEZ in Belagavi district.

The revised transmission tariff to be collected by KPTCL from ESCOMs has also been fixed for Financial Year 21(FY21). The revised tariff will come into effect for the electricity consumed from the first meter reading date falling on or after November 1.

In the normal course, the revised tariff comes into effect from first of April every year. KERC states that the tariff order could not be issued on time because of the imposition of total lockdown on account of the Covid-19 pandemic and the pendency of an appeal filed by KPTCL before the Appellate Tribunal for Electricity (ATE) against KERC order issued in January, 2020 and disposal of the said appeal on October 5 by the ATE.

The increase in tariff is necessitated, according to the KERC, due to the fact that the cost of power purchase has been increasing year after year, due to procurement of energy from new thermal and from enewable energy sources, to meet the demand.

"The input costs towards Operation & Maintenance and borrowings for capital expenditure are also increasing year on year. Hence, in order to enable the ESCOMs to carry on their business of supplying the electricity which is the basic need of the society, the increase in the tariff has become inevitable," the KERC stated in a release.

The release further read, "In view of the adverse financial situation prevailing among all the sectors of economy due to Covid-19 pandemic, the Commission has decided to give effect to the revised tariff for the electricity consumed from the meter reading date falling on or after November 1 resulting in recovery of the revised tariff only for 5 months in Financial Year 20-21." Continued on Page 3