KASSIA opposes move to increase power tarif

NT Correspondent

Karnataka Small Scale Industries Association (KASSIA) on Monday took strong objection to the proposed Rs 1.58 per unit hike in power tariff. The Bengaluru Electricity Supply Company (Bescom) has submitted a proposal to hike power tariff before Karnataka Electricity Regulatory Commission (KERC).

At a public hearing held on Monday, KASSIA stated that any hike should b e w i t h i n +/- 20% of cost as per the national tariff policy mandated by the Union Government in 2006. Bescom is yet to work out the cost to serve, though it should have done so by 2011.

Shrinath Bhandary, former energy panel chairman, and Mallappa Gowda, former co-chairman, energy panel, KASSIA, made some observations urging for reduction in the tariff hike, as opposed to an upward revision.

“HT consumption has come down by 23 per cent and HT industrial consumers are moving away from Bescom to open access which is cheaper. Even LT consumption has gone down and any upward tariff hike will compel many industries to shut down,” said Shrinath Bhandary.

He said the cross-subsidization of power supplied to IP sets at Rs 3.90 per unit as against average cost of Rs 8.17 per unit is a big burden on the other consumers. “ P e n d i n g dues from the government installations of Rs 698.85 crore should not be passed on to the consumers and should be recovered from the government only,” he said.

He said that Bescom has not disclosed any plan for introduction of pre-paid meters as provided under Section 47(5) of the Electricity Act, 2003 and has made tardy progress in completing metering of DTCs.

Metering of only half the number of DTCs has been completed though it was directed to finish the work by 2020.