Power bills become cheaper in Karnataka

For the first time in Karnataka’s history, the electricity tariff has been reduced by around ten to fifteen percent for every unit of power consumed across the state except Bangalore.

Shooting down a proposal from the Electricity Supply Companies of the State to increase the power tariff by 40 paise a unit for all types of consumers, except those under the Below Poverty Line (BPL), the Karnataka Electricity Regulatory Commission (KERC) effected a downward revision ranging from 10 to 35 paise for every unit of power consumed.

Much to the chagrin of the Electricity Supply Companies, which are planning to move the Central Power Tribunal against the KERC, the newly revised electricity tariff will come into force from November 1 this year. The average price of a unit of power is set to come down from Rs 3.56 to Rs 3.20 per unit.

Though the reduction in power tariff is not applicable in Bangalore, the electricity consumers in Bangalore Metropolitan Area and eight civic bodies on its periphery have been spared from a hike the Electricity Supply companies proposed.

KERC Chairman K P Pandey, who announced the reduction in electricity tariff, said the five Electricity Supply Companies in Karnataka had surplus money, which had to be passed onto the consumers.

The good inflow into the hydro-electricity power generation reservoirs this year had helped KERC offer a concession in tariff to power consumers in the State. “The year 2006-07 is one of the best years with high-energy availability from hydro-stations. Hence, a moderate reduction in tariff is considered for urban areas and a slightly higher reduction for those in rural areas”, Pandey said.

Meanwhile, the Karnataka Power Transmission Corporation Limited (KPTCL) under whose jurisdiction the five Electricity Supply Companies fall, is examining the options of challenging the KERC announcement on tariff reduction before the Central Power Tribunal.

Clearly disappointed with the KERC for turning down its plea for a tariff hike, KPTCL Managing Director Bharatlal Meena said he may have to take up the issue with Central Power Tribunal. “The KERC appears to be trying to please the consumers at the cost of electricity supply companies as well as their service”, Meena regretted.