Revision of Electricity Tariff in Karnataka for the year 2012-13

Karnataka Electricity Regulatory Commission (KERC) has ordered revision of electricity tariff for all the Electricity Supply Companies in the State for the Financial Year 2012-13 and will come into effect for the electricity consumed from the first meter reading date falling on or after 30th April 2012.
The average tariff increase approved by the KERC amounts to 13 paise per unit and varies across different categories of consumers.The existing tariff for Commercial and Industrial consumers across the State has been increased by 20 paise per unit.
A new HT tariff category namely HT5 is introduced for consumers availing temporary supply with a demand of 67HP or more.

Cross Subsidy Surcharge:
Cross subsidy Surcharge has been reintroduced for consumers availing Open Access. The cross subsidy payable for the year 2012-13 by different category of consumers is provided in the table below:

The reason quoted forimposing cross subsidy charges in place by the commission is due to the prevailing situation of power availability during the relevant years.The point to be noted is that Since 2009 Tariff Order, the cross subsidy charges was Zero in order to encourage open access and to incentivise the State consumers (especially industrial and commercial consumers) to purchase power from outside the State at reasonable rates.
In our view, we see this has a discouraging development for open access consumers of the State (especially Industrial & Commercial).
Fuel Cost Adjustment Charge
KERC has proposed to introduce fuel cost adjustment mechanism in order to incorporate any increase / decrease in fuel cost from time to time. The Commission had sought data of fuel variation costs from ESCOMs. After due analysis of the same, the Commission will issue a separate Order in the matter which will be effective from the current year.
Time of Day Tariff
The Commission has decided to make Time of Day Tariff compulsory for HT2(a) and HT2(b) consumers with a contract demand of 500 KVA and above with effect from 1st September 2012.
Green Tariff
Green Tariff introduced in the previous tariff order for HT Industries & HT Commercial Consumers at their option, to promote purchase of energy from Renewable Sources and toreduce carbon footprint is continued. Consumers opting for green tariff have to Pay Re. 1.00/unit over and above the normal tariff.

Encouraging Solar Energy Generation
The Commission has decided not to charge any wheeling charge on transmission / wheeling of solar energy.
Contributed by Suresh Kumar