The energy department Govt of Karnataka has issued a Clarification to the Public Regarding Tariff Revision/Hike.
As per the Indian Electricity Act, all States have set up Electricity Regulatory Commissions for regulation and tariff fixation in the electricity distribution companies.
Accordingly, the Karnataka Electricity Regulatory Commission (KERC) was set up in 2002. The KERC has been taking up the issue of tariff fixation every year for the 5 Electricity Supply Companies (ESCOMs) in the State.
The ESCOMS file the Expected Return from Charges (ERC) filings in November every year to the KERC.
After examining the submissions and after consultation with all stakeholders and giving an opportunity to the public, KERC determines and notifies the tariffs usually by the end of March for the financial year starting 1st April.
In the present year, the KERC tariff order was notified on 12-05-2023, somewhat delayed because of legislative elections and the code of conduct.
The New Government in the State was formed on 20-05-2023; that is, the tariff order was notified prior to the formation of the new Government.
The Tariff revision came into force from the billing cycle of June 2023.
The June bill appears to be high because of the 2 factors below:
1. Impact of 2 months’ increase in tariff.
2. Impact of high power purchase cost in the month of March 2023.
It is expected that bills for subsequent months would be relatively less.
The Government has also taken the decision to pass on benefit to domestic consumers for the July consumption to be billed from 1st August 2023 under the Gruh Jyoti Scheme.
The ESCOMs have been directed to look into the genuine grievances of the consumers and resolve those. Depending on circumstances, the ESCOMS may give an extension of time for payment of bills.
Arrears on domestic installations can be paid up to September 2023 as part of the Gruha Jyothi Scheme.