Hiked tariff from April being billed in June: CESC MD clarifies
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Hiked tariff from April being billed in June: CESC MD clarifies

June 13, 2023

Mysore/Mysuru: The Karnataka Electricity Regulatory Commission (KERC) revised the power tariff on May 12, 2023, raising it to an average 70 paise per unit for all household connections in the State and the order was given retrospective effect from April 2023.

Due to the revision of the tariff, an enhanced average 70 paise per unit is being collected in the June bills, said Chamundeshwari Electricity Supply Corporation (CESC) Managing Director Jayavibhavaswamy. Since this order was passed with a retrospective basis from April 1, arrears are also being collected in the June bill, he explained.

In a note to Star of Mysore that gives a break-up of the charges and their implications, the CESC MD said that the fixed charges have been hiked by the KERC with retrospective effect from 1.4.2023 from Rs. 100 per KW to Rs. 110 per KW for domestic consumers. Hence, there is a hike of Rs. 10 per kilowatt in the bill.

Earlier, till the previous month, there were different slabs in energy charges calculation — 0 to 50, 51 to 100, 100 to 200 and 200 and above, as shown in previous months bill. “But now, telescopic rates are approved by the KERC. That means, if a user consumes from 0 to 100 units, Rs. 4.75 is charged per unit. But if the consumption exceeds 100 units, a common telescopic rate of Rs. 7 per unit is applied for the whole of consumption from 0 till the last reading,” the note said.

Fuel Adjustment Charge

The FACs (Fuel Adjustment Charges) are the charges collected for variation in rates of coal and diesel used for energy production in thermal and diesel plants respectively. They are now calculated monthly (from January 2023) and can be collected in three months.

 “Hence, we collected 0.53 paise per unit till last month. But the FAC has abnormally increased in April and May. Hence, it is Rs. 2.42 per month only in the June 2023 bill. Probably, it will be substantially low (probably below Re. 1 or even 50 paise) in the July bill, as rates were low in May – June. This FAC increase seems to be more only in the June 2023 bill. It will probably be low in coming months,” the note said.

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Retrospective effect hike

Arrears are the arrears of fixed charges and energy charges for the energy consumed in April 2023, calculated with retrospective effect from 1.4.2023. The revision of the tariff order was supposed to be implemented in March/April, but due to the code of conduct announced for the Karnataka Assembly elections on Mar. 29, the issuance of the tariff order was put on hold by the KERC. However, it was issued on May 12, with retrospective effect from April, the note added.

On the Gruha Jyothi scheme, the CESC MD said that it will be effective to all consumers from the July 2023 billing date. “All those who have average consumption of less than 200 units, irrespective of income are eligible. Provision for tenants or leased properties are also being considered by the Government. As such, the tariff hike in the June 2023 bill will not be the same in coming months,” the note said.

‘Rs. 50 solar rebate withdrawn’

The Rs. 50 rebate for solar connections has been withdrawn as the Government promised 200 units of free power and keeping the rebate is meaningless. The rebate will not henceforth be available even to the consumers who use beyond 200 units as they have to pay a bill of over Rs. 3,000 and Rs. 50 hardly matters to them.” —Jayavibhavaswamy, CESC Managing Director

4 COMMENTS ON THIS POST To “Hiked tariff from April being billed in June: CESC MD clarifies”

  1. Vinod says:

    Hope people realize that all political parties are same. The free electricity was just a poll gimmick to win election.

  2. Raghu C says:

    Exactly

  3. A V Prasanna says:

    The justification of CESC MD on solar power rebate withdrawal, does not have any sense. What if a consumer like me who consumes around 150 units, why my solar power rebate has to be withdrawn? So Govt. in general and MD in particular, has forced me to apply for waiver of electricity bill and go for free electricity. Unfortunately we do not have any consumer forum to be present in KERC meetings when power tariff revision is discussed and implemented. All discoms have a field day in putting forward fictious figures, and force KERC for tariff revison. After all these discom people including their MD’s are getting free power.

  4. Never Presto Questo says:

    Hey Prasanna
    The man who promted the use of LPG cyliders, opposing the pumped gas project in Mysore. Hope, you got that money promised from the LPG contractors. As you have boasted that you were an engineer who took decisiona in that pollution-rich thermal power station near Mumbi,
    you are not short of money.
    Before you think of replies, ensure that your English is free from the errors of its usage. For example, the opening sentence: “The justification of CESC MD on solar power rebate withdrawal, does not have any sense” should be: The justification of CESC MD on solar power rebate withdrawal, does not MAKE any sense”. The right word is substituted in the uppercase.
    Could you give an example of a country, where tariffs for utilities, are decided in a committee where a consumer forum is represented?
    When you are accusing threse CESC officials getting free power, did you get free power when you were working at that thermal power station in Mumbai?

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