Power tariff in Karnataka goes up 8 per cent


BENGALURU : In a shocker to domestic, commercial and industrial users, the Karnataka Electricity Regulatory Commission (KERC) on Tuesday announced an eight per cent increase in electricity tariff, or an average of 53 paise per unit, with effect from April 1.


"The average increase will be 53 paise per unit for all categories, including domestic, commercial and industrial consumers, across the state," KERC Chairman M.K. Shankaralinge Gowda told reporters here.

The state-run electricity supply companies (escoms) such as Bescom, Mescom, Hescom and Gescom, however, sought 25 per cent or Rs 1.48 per unit increase.

"The tariff has been increased to bridge the revenue gap of Rs 2,296 crore of escoms for fiscal 2016-17, meet the higher cost of power purchase for fiscal 2017-18, higher fuel cost for thermal plants and fuel adjustment cost," said Gowda.

Bangalore Chamber of Industry and Commerce President T. Valliappa said the tariff hike was a blow to consumers, especially in the industrial sector.

"The escoms should check pilferage and reduce transmission and distribution loss, which are 18 per cent," he said.

The watchdog has given 50 paise per unit rebate for effluent treatment plants located in industrial premises across the state.

"Increase in power purchase cost is due to less availability of cheaper hydel power owing to poor monsoon and energy procurement at short notice," added Gowda.

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