KERC announces a nine per cent increase in tariff across all escoms

Here is a shocker… even as the state is reeling under power shortage, the electricity tariff has been increased by the Karnataka Electricity Regulatory Commission (KERC).

On Wednesday, KERC chairperson M.K. Shankarlinge Gowda announced the tariff hike and said that it would come into effect from April 1.

While the overall increase is nine per cent over the existing tariff, there is a marginal increase in fixed cost in the range of Rs. 5 to Rs. 10 per kw/ kva for all low tension (LT) and high tension (HT) consumers.

Against the uniform increase of Rs.1.02 per unit proposed by the electricity supply companies (escoms) for all categories, KERC has allowed an average increase of 48 paise per unit, ranging from 15 to 50 paise for different categories of consumers of IP sets and Bhagya Jyothi / Kuteer Jyothi schemes

Urban consumers

So what will domestic consumers in urban areas be paying? For a monthly consumption of up to 30 units, the tariff has been increased from Rs. 2.70 per unit to Rs. 3 per unit. For consumption of power between 31 and 100 units, citizens will have to shell out Rs. 4.40 a unit. The tariff was earlier Rs. 4. Those consuming 100 to 200 units of power will have to pay Rs. 5.90 a unit, an increase from Rs. 5.40 a unit. For those consuming over 200 units of power, the tariff has been hiked from Rs. 6.40 to Rs. 6.90 a unit.

Rural consumers

The tariff for domestic consumers in rural areas has also seen changes. For those consuming up to 30 units, the tariff has been hiked from Rs. 2.60 to Rs 2.90 a unit. For those consuming 31 to 100 units, the tariff has been hiked to Rs. 4.10 a unit from the earlier Rs. 3.70 a unit. Those consuming 100 to 200 units will have to pay Rs. 5.60 a unit, an increase from Rs. 5.10 a unit, while those consuming over 200 units will have to shell out Rs. 6.40 a unit that has been increased from the earlier Rs. 5.90 a unit.

Industrial consumers

Meanwhile, the tariff increase for LT industrial consumers is 30 paise per unit. It was earlier 15 paise per unit. For industrial consumers in BBMP areas under Bescom, the tariff is Rs. 5.10 a unit (for first 500 units), instead of the earlier Rs. 4.9 a unit. Those consuming above 500 units will have to Rs. 6.30 a unit against the earlier Rs. 6 per unit.

The reasons given for the tariff increase includes recovery of past regulatory assets of Rs. 1,105 crore (accounting to 20 paise per unit), increase in power purchase cost due to additional coal cess levied by the union government (eight paise per unit), breakdown of the Sharavathi Hydro Power Station necessitating procurement of high cost power (five paise per unit), and increase in power purchase cost due to addition of new sources of power (15 paise per unit).