In a rare decision, a national-level appellate forum has set aside electricity tariff fixed by the State Electricity Regulatory Commission in favour of the original, and milder, hike recommended by the KSEB.
In an October 25 judgment, the Appellate Tribunal for Electricity (APTEL) scrapped the tariff fixed by the Commission for the HT-IV category of consumers, as it found that the hike was way higher than that proposed by the KSEB. The decision came on a petition filed by the Association of Approved and Classified Hotels of Kerala challenging the tariff, which was announced as part of the general tariff hikes in July 2012.While the KSEB had proposed only a 43 per cent increase in tariff for this category, the Commission - which has the last word on tariff - effected a 59 per cent increase.
“The Board had proposed energy charges of Rs 5.50 per unit, but the State Commission decided energy rate of Rs 5.50 per unit for consumers in this category with monthly consumption up to 30,000 units and Rs 6.50 per unit for consumers with monthly consumption of above 30,000 units. Thus, the State Commission effected a tariff increase of around 59 per cent for this category, as against the 43 per cent increase proposed by the KSEB,” the APTEL found.
The petitioners argued that the KSEB proposal was, in fact, “reasonable” compared to the Commission’s, which, they argued, would lead to “tariff shock”.