Consumers asked to submit objection to hike

BANGALORE: With another hike in power tariff imminent, the Karnataka Electricity Regulatory Commission (KERC) has given a month’s time for consumers to submit their objections or suggestions. The BESCOM  has sought an 88 paisa per unit uniform hike along with other state electricity utilities.BESCOM has stated in its notification that the supply company is facing a revenue deficit of Rs 1665.31 crore for the year 2011-12 as against Rs 154.94 crore for 2010-11. While its average cost of supply has increased from Rs 4.41 per unit in 2010-11 to Rs 5.15 per unit for this financial year.Speaking to The New Indian Express, Karnataka Small Scale Industries Association (KASSIA) new President Prakash Raikar said, ”We will oppose tooth and nail any attempt to revise the electricity rates. The industries in the country are only limping back to normalcy, already we had one tariff revision. Any increase in electricity charges will have huge impact on the industries. This decision has to be opposed,” Raikar added.This would be the third time in Karnataka that the energy tariff rates are being revised, even though the state claims to follow a multi-year tariff (MYT) process. The previous tariff hike was carried out on December 7, 2010, where the utilities had sought for a 75 paise per unit increase but the commission decided on an average 23 paise per unit hike.The concept of MYT gives an element of certainty to all stakeholders, while the consumers have a fair idea of what to expect in the next three to five years.“The commission should carry out a prudence check on all the capital expenditure  of the utility, while truing up of all expenses all will offer a clear picture. Only if such practises are follow, then we will be able to validate the necessity of a tariff revision,” Federation of Karnataka Chambers of Commerce and Industry (FKCCI), energy committee chairman, MG Prabhakar said. The State Electricity Regulatory Commission has asked consumers to submit their objections or suggestions with supporting documents and a supporting affidavit to the receiving officer, office of the secretary, Karnataka Electricity Regulatory Commission, 6th and 7th floor, Mahalakshmi Chambers, Bangalore-560001.What to expect?As per the proposed tariff increase for BESCOM consumers, those paying Rs 2.10 for consuming up to 30 units will have to pay Rs 2.98 and for the 31 to 100 unit slab, the proposed increase is Rs 4.08 from the earlier Rs 3.20. Those consuming 101-200 units may have to pay to Rs 5.08 per unit from the existing Rs 4.20 per unit. While above 200 units, the proposed hike is Rs 5.88 paisa from the existing Rs 5 per unit.