The Hindu : Power to cost more

Online edition of India's National Newspaper
Tuesday, Mar 11, 2003

Southern States

Southern States - Karnataka

Power to cost more

By Our Staff Reporter

BANGALORE March 10. The Karnataka Electricity Regulatory Commission (KERC) has allowed an average overall tariff increase of 2.02 per cent for 2003-04. This means almost all metered category consumers will only pay 10 paise more per unit.

Now, all consumers, except Bhagya Jyothi beneficiaries and irrigation pumpset owners, will pay a tariff equal to or more than the cost of power supplied. The new tariff applies to all four electricity supply companies and comes into effect when notified. The electricity companies had sought a 10.5 per cent increase to fetch Rs.590 crores. But the KERC Chairman, Philipose Mathai, said the commission had calculated that only a 2.02 per cent increase was needed, to bring in Rs.113.45 crores. The difference is due to varying rain forecasts. The electricity companies/Karnataka Power Transmission Corporation Limited (KPTCL) had assumed that rainfall would fail this year as it did in 2002 and 2001.

Terming this ``pessimistic,'' the KERC took a 10-year average of inflows.

If the rainfall is bad, the electricity companies/KPTCL could approach the KERC in October "using approved parameters and we will re-calculate tariffs,'' Mr. Mathai said.

If the rainfall exceeded KERC estimates, the tariff could be lowered, he said. Public hearings could be held then. But if there was no ``substantial compliance'' with the KERC directives, the petitions (when filed in October) "will be summarily rejected.'' The tariff order has cut subsidy from Rs.1,480 crores to Rs.1,143 crores. Transmission and distribution loss has been kept at 28 per cent (as in 2002) as targets have not been met. This time, KPTCL wanted it to be 30.6 per cent. Twenty eight per cent transmission and distribution loss will be applied if the electricity companies seek a review in October.

Now the rate for irrigation pumpsets has been linked to quality and hours of power supply. If the schedules are not met, the companies should give a rebate to farmers. (There already exists a 25 per cent rural rebate on fixed charges).

The KERC has left Bhagya Jyothi tariff untouched at Rs.30 a month, though the KPTCL wanted it to be Rs.50.

The commission has not let the Bangalore Electricity Supply Company charge Rs.10 per kW extra for Bangalore and has ruled out differential rates for urban and rural areas. For solar water heaters, the rebate is 35 paise per unit up to a maximum Rs.35 a month from the earlier 25 paise and Rs.25 a month.

Moreover, HT lift irrigation consumers are untouched. The load factor-based incentive scheme for industries has been stopped.

Printer friendly page
Send this article to Friends by E-Mail

Southern States

Stories in this Section

Power to cost more

'Power consumers will not be forced to pay dues'

Water to be supplied in tankers in Mysore

P. Manivannan is pvt. secy. to CM

IT course to be introduced at undergraduate level

Speaker to consider N. Karnataka session