Electricity tariff hiked by 70 paise a unit

Electricity tariff hiked by 70 paise a unit

May 13, 2023

Bengaluru: In a rude shock to the people of the State a day before the counting of votes for Karnataka Assembly polls-2023, the Karnataka Electricity Regulatory Commission (KERC) on Friday hiked power charges by 70 paise a unit for domestic consumers with retrospective effect from Apr. 1.

The tariff is hiked by 70 paise a unit for domestic consumers of all ESComs. However, Industrial and Commercial consumers will pay Re. 1 less a unit, according to the KERC order issued on Friday.

As per the order, the fixed charge under different ESComs has gone up from Rs. 110 to Rs. 210 for consumers utilising more than 50 KW. The hike is moderate on those who utilise less than 100 units.

The 70 paise/unit is the biggest increase of tariff announced by KERC in 10 years, surpassing the previous record of 53 paise/unit announced in 2017-18.

In a note, KERC cited a Revenue deficit of Rs. 1,720.11 crore for the previous financial year and 13% rise in the power purchase cost. The 20% hike in pay and allowance of employees and the increase in interest and finance charges by 30% also added to the burden, it said.

Though the order was ready for over a month, the KERC postponed the matter due to election.


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