KERC increases tariff by an average of 30 paise per unit
People must pay extra for electrical energy because the Karnataka Electricity Regulatory Commission (KERC) has authorized an average enhance in tariff by 30 paise per unit for all electrical energy provide firms (Escoms) for the continued monetary 12 months.
According to the fee, the revision is an average enhance of 3.84%. The Escoms had sought an average enhance of ₹1.35 per unit accounting for 17.31% enhance.
The revised tariff will come into impact for electrical energy consumed from the primary meter studying date falling on or after April 1 this 12 months to “enable recovery of the revenue gap determined by the commission.”
“However, to soften the burden of increase in tariff on consumers during the prevailing COVID-19 lockdown, the arrears towards revision of tariff for April and May is ordered to be recovered during October and November respectively, without charging any interest,” the fee has mentioned. Defending the rise, KERC has mentioned it was necessitated owing to a range of elements, together with the regulatory asset created by the fee in its 2020 order owing to the delayed concern of tariff order for the earlier monetary 12 months (11.89 paise per unit).
The tariff revision was introduced in November owing to the pandemic and the KERC introduced that it’ll not be applied retrospectively.
Instead, it had introduced the creation of a regulatory asset for the interval to be recovered from customers in two equal installments throughout the monetary years of 2022 and 2023.
“The remaining increase (12.64 paise per unit) is towards overall increase in the operational costs of Escoms, which includes the approved revenue deficit as per the annual performance review for FY20 and also the increase in the cost of power purchase,” the fee mentioned. The complete income hole has been pegged at ₹1,819.38 crore.
While the rise is uniform throughout Escoms with a marginal differential enhance in Bescom areas, the rise in vitality fees is 10 paise per unit, and enhance in fastened price ranges between ₹10 and ₹20 throughout all of the classes besides Bangalore Metro and battery charging stations for electrical automobiles.
The year-on-year enhance in fastened price, a considerable half of which is being recovered by way of vitality fees, is necessitated as the present degree of restoration of fastened fees is simply 33%, which is able to now go as much as 34.29%.
KERC cited the ballot code and COVID-19 as causes for the delay in tariff revision.