KERC raises tariff by 30 paise; also increases fixed charges

The Karnataka Electricity Regulatory Commission (KERC) has increased the average tariff by 30 paise a unit (including fixed charges), an increase of 7 per cent. For the first time in several years, the KERC has also increased the fixed charges to Rs 5/KW/month. The lowest tariff increase is 10 paise for domestic customers – up to 30 units consumption a month in urban areas and 100 units a month in rural areas, and an increase of 50 paise for consumption of over 200 units a month.

The five ESCOMs (electricity supply companies) in Karnataka had, however, filed separate tariff petitions to the KERC seeking a tariff hike of 88 paise a unit for all consumers, barring irrigation pumpsets and Bhagya Jyothi/Kutir Jyothi.

During tariff revisions last year, the KERC had carried forward 12 paise to be hiked this year, and the overall 30 paise hike includes this, clarified Mr M R Sreenivasa Murthy, Chairman, KERC, at a press conference.

The KERC has given the ESCOMs a set of mandate to help reduce transmission and distribution (T&D) losses, Mr Murthy said.

ESCOMs have been ordered to switch from LT to HT with the high voltage distribution system (HVDS) at least in one division in each ESCOM area during the current year.

Nearly 16.5 per cent of electricity is lost across all ESCOMs from T&D.

ESCOMs have been asked to replace inefficient pumpsets as efficient ones can help save about 5,000 million units or Rs 2,000 crore a year, Mr Murthy said. KERC has also recommended recruiting junior engineers, linemen and assistant linemen, to address quality service.

The ESCOMs have 19,856 vacancies out of the total sanctioned strength of 52,627 and the KERC has ordered for at least 50 per cent of this to be filled.

The amount of subsidy to be paid by the Government towards free supply of electricity to the farmers with IP sets below 10 HP and Bhagyajyothi/ Kutirjyothi households is increased to Rs 4,156 crore for the current year from Rs 3,577 crore paid for 2010-11. “The subsidy for last year has been fully paid, and for this year, the Government is paying it every month,” Mr Murthy said.

The electricity tariff for household consumption in urban areas is increased to Rs 2.20/unit for consumption up to 30 units, to Rs 2.40/unit for consumption between 30 units and 100 units, to Rs 3.50/unit for consumption between 100 units and 200 units, to Rs 5.00/unit for consumption between 200-300 units and Rs 5.50/unit for consumption beyond 300 units/month.

The household consumers in the rural areas will pay between Rs 2.10 and Rs 5.00/unit in different slabs of consumption, with only 10 paise/unit increase for consumption up to 100 units/month.

The tariff for irrigation pumpsets, private horticulture nurseries, and coffee and tea plantations has been increased by 0.15 paise from Rs 1.25 to Rs 1.40. KERC has not increased the tariff for water supply works, both in urban and rural areas. Similarly, the tariff for railway traction and effluent plants also remains unchanged for the current year.

The LT commercial tariff in urban areas has been increased from Rs 5.60 to Rs 6.00/unit for the first 50 units and from Rs 6.80 to Rs 7.00/unit for consumption beyond 50 units.

In the rural areas, the new rates will be Rs 5.40 and Rs 6.40/unit, respectively.

For the LT industrial units, the tariff has been increased from the earlier rates ranging from Rs 3.60 to Rs 4.70/unit in Bangalore to the new rates ranging from Rs 4.00 to Rs 5.00/unit.

In other areas, the new tariff ranges from Rs 4.00 to Rs 4.80/unit. For the HT industrial users, the tariff has gone up by a uniform 30 paise/unit over the existing rates of Rs 4.60 and Rs 5.00/unit to Rs 4.90 and Rs 5.30/unit.



Mechanical engineer with experience in Power Plant maintenance , operation and auditing for ISI marked products. MBA in Power Management from National Power Training Institute, Faridabad. Working as Consultant for Bridge to India Pvt. Ltd. Expertise in: 1) Power sector regulations 2) Financial Modelling 3) Project Development solar PV plants 4) Strategic consulting 5) Report writing

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