KERC moots Telangana model for IP sets subsidy

Power to be cut if bills not paid; will apply to govt offices too
Representational image of power grid.
Representational image of power grid.

BENGALURU: Karnataka Electricity Regulatory Commission Chairperson H M Manjunatha on Monday said that all electricity supply companies (Escoms) should fall in line and be serious and efficient in their working, failing which they should be ready to face stern action.

He was speaking to the media after the Commission announced increase in power tariff by 35 paise, with effect from April 1, 2022. “The power situation has improved over the years and there is no shortage of power, but at the same time there is no professionalism among companies,” he said, adding that all Escoms should think of it as an industry and not a government body. “They seem to have forgotten they come under the Companies Act. They should have a corporate culture.”

Manjunatha said Karnataka should follow Telangana’s power supply model, where good subsidy is given for IP sets for over and above the average consumption. Modalities are being worked out on how it can be gradually introduced here, he added.

The Commission announced that the estimated subsidy amount to be paid to Escoms and Hukkeri RECS by the government towards free supply of electricity to 33.15 lakh IP sets up to 10HP is Rs 13,019 crore for the financial year 2023, as against Rs 12,267.58 crore.

On recovery of dues, Manjunatha said power supply will be cut off if bills are not paid, and this will apply to government offices also. As per KERC assessment, there are dues of around Rs 6,000 crore, but as per the Reforms Committee headed by former chief secretary T M Vijay Bhaskar, the dues are around Rs 8,000 crore.

Not the time to hike rate: FKCCI
Bescom had initially proposed Rs 1.58 per unit energy charge, and now KERC has approved the overall average increase of 35 paise per unit, which is approximately 4.33 per cent, as against 23.83 per cent proposed by Bescom. FKCCI welcomes the special incentive schemes announced by KERC. It was not an appropriate time to hike the power tariff. FKCCI had made strong representation to the energy department and KERC during the public hearing not to hike the power tariff for the next 2-3 years. I S Prasad, President, FKCCI, Bengaluru.

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