Power tariff hike unlikely

EXPERTS SAY SUPPLY COMPANIES' PROPOSAL to Increase tariffs cannot be implemented now as there's a case Pending against them in appellate tribunal

EXPERTS SAY SUPPLY COMPANIES' PROPOSAL to Increase tariffs cannot be implemented now as there's a case Pending against them in appellate tribunal

Consumers may not have to pay a higher power tariff this year as the supply companies are embroiled inu00a0 legal battles over the charges.

Electricity Supply Companies (Escoms) submitted a proposal to Karnataka Electricity Regulatory Commission (KERC), on Tuesday, to hike the power tariff by 51 paise per unit, for all consumer categories, applicable for the year 2009-2010.

However, the experts feel the proposal cannot be implemented, as there is a case pending against the Escoms in the appellate tribunal. KERC had ordered downward revision of tariff rates for three years, between 2007 and 2010, and the Escoms had moved the tribunal questioning the order.

"The proposal cannot be implemented," said M G Prabhakar, power sector expert. Prabhakar is associated with Federation of Karnataka Chambers of Commerce and Industries (FKCCI) that is fighting various cases against power suppliers. "When there is a case pending against the companies, how can they ask for tariff hike for the same period," he said.

"When Escoms can move the tribunal over reduction in tariffs, why can't consumers do the same when there is hike that is not justified?" he added.

When the regulatory commission is trying hard to ease burden on the consumers, the Escoms are playing spoilsport. When KERC had ordered for price cut by 10 paise per unit, for the year 2006-07, the companies moved tribunal and the period of tariff order expired before the tribunal rendered the verdict.

Not so easy

KERC also indicated that it would not be an easy affair for the Escoms.

"We will examine all the aspects before taking a decision. We can accept the proposal or at the same time reject it. We have to thoroughly study the proposal," said K P Pande, chairman, KERC.

As per the procedure, the process of filing objections and public hearing by KERC takes at least three monthsu00a0 time, which means there will be no fresh tariffs before January.

"Instead of all this legal wrangling, we have to look at the prospects of Escoms. I think KERC must allow the tariff hike," said K Jairaj, principle secretary, energy department.

According to him the actual hike would have been Rs1.13 per unit.u00a0 But it was finalised at 51 paise after the intervention of power minister K S Eswarappa, who didn't want to place an unconscionable burden for consumers who were already suffering from long-hours power cuts.

PAYING THE PRICE
The existing power tariffs were proposed for the year 2005- 06. The KERC then had ordered an average cut of 10 per cent for three years between 2007 and 2010. The tariff proposal and KERC's order for the year 2006- 07 had to be shelved due to the legal battle.

Existing tariffs for Bangalore city:
Up to 30 units: Rs.1.55
30 to 100 units:u00a0 Rs. 2.90
100 to 200 units:u00a0 Rs. 3.60
200 to 300 units:u00a0 Rs. 4.10
300 to 400 units:u00a0 Rs. 4.55
More than 400 units: Rs. 4.60

KERC's order:
Up to 100 units: Rs. 2.60
100 to 200 units: Rs.3.40
200 to 300 units: Rs. 4.00
300 to 400 units: Rs. 4.25
Above 400 units: Rs.4.50

Escoms are now seeking a power tariff increase of 51 paise per unit

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