Power Tariff Hiked by 8% in Karnataka

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 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 LT & HT consumers.

The overall increase in tariff is 8 per cent against 25 per cent increase sought by ESCOMs – Bescom, Mescom, Cesc, Hescom, Gescom and Hukeri RECS.

M K Shankaralinge Gowda, Chairman, Karnataka Electricity Regulatory Commission, said: “The tariff increase is necessitated due to recovery of gap in revenue of Rs. 2,296 crore of FY16, which accounts for about 42 paise per unit.”

He added “This is on account of increase in power purchase cost due to reduced availability of cheaper hydel power owing to poor monsoon and consequent procurement of costlier short-term power. Increase in power purchase cost for FY18 is about 6 paise per unit, which is mainly due to increase in fuel cost of thermal power plants.”