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KERC Slashes Electricity Tariffs for Consumers in Karnataka Using Over 100 Units/Month

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By uday

Karnataka Electricity Regulatory Commission (KERC) has decided to reduce electricity tariffs for domestic, commercial, and industrial consumers with monthly consumption above 100 units/month in Karnataka. This reduction in tariffs would likely benefit consumers by lowering their electricity bills. However, since the tariffs are being reduced, the government may have to allocate more funds for subsidies to compensate for the reduced revenue that utility companies would receive due to lower tariffs. This subsidy increase would be necessary to ensure that utility companies can still cover their costs and maintain operations despite the reduced revenue from lower tariffs.

REVISION OF ELECTRICITY TARIFF FOR FY2024-25

The Karnataka Electricity Regulatory Commission (KERC) has approved the Revision of the Retail Supply Tariff for the Financial Year 2024-25 for all the Distribution Licensees.

Highlights of Tariff Order:

Marginal Surplus found for FY2024-25 utilized for readjustments of tariff across different tariff categories.

Significant reduction in tariff to Commercial, Industrial consumers & Domestic Consumers (consuming above 100 units per month):

LT Domestic Lighting: energy charges reduced by 110 paise per unit for consumption above 100 units.

HT Commercial: Energy charges reduced by 125 paise per unit; Demand Charges reduced by Rs.10 per KVA;

HT Industrial: Energy charges reduced by 50 paise per unit; Demand Charges reduced by Rs.10 per KVA;

HT Hospital & Educational Institutions: Energy charges reduced by 40 paise per unit; Demand Charges reduced by Rs.10 per KVA

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HT private lift irrigation: Energy Charges reduced by 200 Paise per unit
HT Residential Apartments: Demand charges reduced by Rs.10 per KVA
LT Pvt. Hospital & Educational Institutions: Energy charges reduced by 50 paise per unit;
LT Industrial Installations: Energy charges reduced by 100 paise per unit
LT Commercial Installations: Energy charges reduced by 50 paise per unit;

Time of the Day (ToD) introduced for morning peak-6 a.m. to 9 a.m. in addition to the existing evening peak between 6.00p.m. to 10.00 p.m.

Special Incentive Scheme (SIS) is continued for the financial year 2024- 25, with change in rate of incentive from Rs.2/- per unit to Re.1/- per unit for night consumption. The other terms and conditions remain the same.

Cross subsidization levels reduced.

Optional Self-reading of meters introduced for all LT installations.

Given introduction of a single slab for energy charges, the LT consumers may avail multiple connections to their premises.

Other measures approved: o To ensure adequate recovery of fixed costs being incurred by the ESCOMs, KERC has considered marginal increase in billing demand for HT/ FC for a few LT Consumers, by reducing the energy charges.

To encourage use of electric vehicles, the Energy charges for EV charging stations has been continued at reduced rate of Rs.4.50 per unit.

To promote setting up of Data Centres in the State, industrial tariff is continued to Data Centres.

In view of reduction of tariff to LT Industries the Rebate for Micro and Small industries of 50 paise per unit is discontinued.

Urban and rural categories were merged into one category in the previous Order. The rebate of 30 paise per unit is allowed only for LT commercial, LT Industries, LT Pvt. Hospitals & Educational Institutions in Village Panchayat Areas.

To promote purchase and use of energy from RE sources, green tariff 50 paise per unit over and above the applicable tariff applicable to HT industries and HT commercial, is continued.

Concessional tariff to BMRCL & Railway traction is continued. o As part of tariff rationalization, single slab energy charges are introduced for all the categories of consumers. o The revised tariff is effective from 1st of April, 2024.

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