Monthly power bills will get costlier by Rs 40 to over Rs 70 for domestic consumers across Karnataka while industrial and commercial consumers will pay Re 1 less. The hike will come into effect from April 1.
The Karnataka Electricity Regulatory Commission (KERC) on Friday issued orders increasing the tariff by an average 70 paise per unit for each of the escoms. Consumers will pay the additional charges for April months.
The KERC has merged urban and rural consumers into one category while offering rebate of 30 paise per unit to those who consume less. An official noted that rich and poor live in both urban and rural areas. "Since the amount of power they draw depends on the number of appliances. a rational approach was adopted to ensure those who use less than 100 KW pay less," sources in KERC said.
As a result, the fixed charge under different escoms has gone up from Rs 110 to Rs 210 for consumers utilising more than 50 KW. The hike is moderate on those who do not cross the 50 KW line and utilise less than 100 units.
The 70/unit is the biggest increase of tariff announced by KERC in 10 years, surpassing the previous record of 53/unit issued in 2017-18. In a note, the commission cited a revenue deficit of Rs 1,720.11 crore for the previous financial year and 13 per cent increase in the power purchase cost, which was in turn driven by costlier coal and transportation. The 20 per cent hike in pay and allowance of employees and the increase in interest and finance charges by 30 per cent.
Though its orders were ready for over a month, the KERC postponed the matter due to the election. A day ahead of the poll results, the commission quietly uploaded the orders on the site instead of making an announcement. The strategic move seeks to ensure that the public will not blame the next government for the tariff hike, which reflects the decisions and
performance of the previous government.
Last year, when the KERC hiked the tariff by 35 paise, Bescombills had gone up by Rs 20 to 35. Bescom officials said information on how the tariff hike will translate on the bills of consumers in different slabs will be provided soon after the end of the code of conduct.
EVs, small industries, goshalas get relief
The tariff for EV charging centres has been reduced by 50 paise, Rs 5 to Rs 4.50 to encourage electric vehicles. A similar rebate has also been extended to micro and small industries. Also, goshalas have been extended domestic tariff.