Shocking anomalies in power tariff hike
Shocking anomalies in power tariff hike

While the power tariff hike proposed by the State Electricity Regulatory Commission  is expected to come up for a detailed discussion at the Cabinet meeting here on Wednesday, it is learnt that many a proposal in the new tariff structure has been arrived at by the Commission by exceeding its brief and ignoring certain provisions of the Electricity Act, 2003.

Instances of slapping a higher tariff over and above the recommendation of the KSEB have been detected in a few categories and violation of the principle stipulated in the Act that only a 20 per cent (more or less) tariff can be levied on the average cost estimated to produce a unit of power (Rs 4.64) has also come out.

The worst tariff hike in percentage (205.6) is for public lighting (LT IX), under the control of local bodies, with the energy charge poised to go up from the existing 90 paise per unit to Rs 2.75.

Incidentally, the commission is on record stating that `none of the local self-governments came before the Regulatory Commission to argue their case.’

In the case of non-domestic LT VI(D) category applicable to orphanages, old-age homes, cancer, palliative care centres, anganwadis and schools for mentally challenged, deaf, blind etc., the tariff rises from 0.85 paise to Rs 1.50 per unit which translates into a 76.5 per cent hike.

Poultry farms, dewatering and lift irrigation for agriculture and livestock farms under the LT V agriculture category, basically involving small enterprises and marginal farmers, are poised to pay a higher tariff (from 0.65 paise to Rs 1.50.) The increase in this category is a hefty 130.8 per cent.

There is an estimated 4.5 lakh connections in this category and the total consumption is only 247 MU. Interestingly,  HT III agriculture category covering big ventures, including dewatering and cultivation, livestock farms, has only attracted a 38.5 per cent hike from Rs 1.30 to Rs 1.80 per unit.

The commission’s wrath has fallen on domestic consumers in the 201-300 unit category, even overriding a recommendation of the KSEB for a tariff of Rs 5.50 per unit. Against the existing tariff of Rs 4.30 in the category, the commission has fixed Rs 6 per unit.

In the 301-500 category, against a proposal of Rs 6.70 per unit, the existing tariff of Rs 5.30 has been scaled up to Rs 7.50.

In the above 500 unit category, the existing tariff of Rs 5.45 has been revised to Rs 6.50, which is below the recommendation of Rs 7 per unit.

The percentage-wise comparable relief for high-end users (HT IV commercial) covering big hotels, business houses, private hospitals etc., is more palpable with a 48.7 per cent tariff hike up to 30,000 units (existing Rs 3.70; new rate Rs 5.50 ) and above 30,000 units (existing Rs 3.70 ; new rate Rs 6.50).

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