K'taka: Power tariff for homes, industries reduced

Bangalore, Oct 16: Presenting a gift to both domestic and industrial consumers on the 50th year of formation of Karnataka, the Karnataka Electricity Regulatory Commission today reduced tariff between 10 and 20 paise per unit for all consumers other than those in the Bangalore metropolitan region with effect from November one.

Releasing the tariff order for 2006-07, KERC Chairman K P Pandey said consumers coming under Bangalore Electricity Supply Company (BESCOM) were excluded from the relief as the State capital was being supplied with best quality power, while it was not so in other parts of the State.

He said the claim of supply companies for tariff hike to an extent of 40 paise per unit across the board was disallowed mainly in view of good inflow into hydro reservoirs in the State this year.

The Commission had asked the companies to revise the power purchase agreements, taking into account the actual inflow into reservoirs up to the end of August this year.

Consumers coming under BPL category would, however, get the maximum benefit under the schemes Bhagya Jyothi and Kutir Jyoti as the tariff had been reduced to a maximum 35 paise per unit, which would be met by the State Government.

Those who would be benefitted from the relief included domestic consumers in both urban and village areas, industries both under HT and LT categories, horticulture nurseries, coffee and tea plantations and educational institutions in all parts of the State, except Bangalore Metropolitan region, he said.

Mr Pandey announced further reduction in the tariff of metered irrigated pumpsets to 30 paise per unit from 40 paise to encourage metering of pumpsets by farmers.

The initial filings of annual revenue requirement (ARR) by the five companies -- BESCOM, Mangalore Electricity Supply Company, Chamundeshwari Electricity Supply Corporation, Hubli Electricity Supply Company and Gulbarga Electricity Supply Company -- was at Rs 10,591 crore, which had indicated a revenue gap of Rs 796 crore after considering the Government subsidy of Rs 1,780 crore.

In view of the good inflow into hydro reservoirs this year, the Commission had asked the companies to revise the PP estimates and ARR and the companies brought it down to Rs 10,175 crore. The company after validation of filings, arrived at an ARR of Rs 8,275 crore allowing the PP based on the sales and allowable losses as per the Tariff Policy of the Union Government. The T and D loss was pegged at 25 per cent as against 26 per cent allowed last year, he added.

UNI