Power tariff in Karnataka hiked by 35 paise per unit from April 1

The KERC Chairman said the Escoms had sought a 185 paise per unit increase, but since they were unable to substantiate their claim, the commission decided to go for a 35 paise per unit rise
Representational image of power grid.
Representational image of power grid.

BENGALURU: The Karnataka Electricity Regulatory Commission (KERC) on Monday announced an increase in the power tariff. Against the demand of 185 paise per unit by Escoms (electricity supply companies), the commission has increased the tariff by 5 paise per unit and the fixed charges by Rs 10-35 per unit for HP. So the overall average increase in tariff per unit for consumers is now 35 paise, which is a 4.33 per cent rise. It comes into effect from April 1.

KERC Chairman H M Manjunatha said the Escoms had sought a 185 paise per unit increase, but since they were unable to substantiate their claim with sufficient documents, the Commission decided to go for a 35 paise per unit average rise.

To promote green energy, the Commission announced a rebate of 50 paise per unit under the green tariff on the applicable tariff for HT industries and HT Commercial Consumers.

Manjunatha announced that to enable micro and small scale industries suffering due to Covid19, the Commission has decided to give a rebate of 50 paise per unit in the monthly energy consumption for one year.

Also for the first time to ensure manufacturing and cold storage plants used for fisheries and other purposes do not go to neighbouring states, the commission announced that all such units within five km radius from the sea will get an additional rebate of one rupee per unit in energy charges. This is apart from ensuring maximum demand charge of 85 per cent of the contract demand or 50 per cent of the normal demand charge plus energy charge.

The Commission also announced a relaxation in evening peak Time of Day tariff during the monsoon and non-monsoon months. The relaxation in ToD tariff for use of power will extend from 6pm to 10pm.

The Commission also announced that the estimated subsidy amount to be paid to Escoms and Hukeri RECS by the government towards free supply of electricity to 33.15 lakh IP sets upto 10 HP is Rs 13019 crore for the financial year 2023 as against Rs 12267.58 crore for the previous year.

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