In the season of price rise, people will have to shell out more for another vital commodity – electricity. The Karnataka Electricity Regulatory Commission (KERC) on Monday announced an average 35 paise per unit hike in electricity tariff for the new financial year (2022-23). This amounts to a 4.33% increase. Incidentally, the hike was announced the day the Bruhat Bangalore Hotels Association (BBHA) met on Monday evening and decided to advise hoteliers to raise prices of food items by up to 10%.
While the BBHA has left it to proprietors to decide on the hike, the Commission has approved an increase in energy charges by 5 paise per unit and increase in fixed charges ranging between ₹10 and ₹30 per HP/KWh /KVA for recovery of a gap of ₹2,159 crore.
The electricity supply companies (Escoms) had sought an average increase of 185 paise per unit accounting for 23.83% increase for the proposed revenue deficit of ₹11,320 crore.
Last year, KERC had approved an average increase in tariff by 30 paise per unit for all Escoms - an average increase of 3.84% against the average increase of ₹1.35 per unit sought by the Escoms. Coming amidst a severe second wave of the COVID-19 pandemic, the hike last year was announced in June. Though it came into effect for electricity consumed from the first meter reading date falling on or after April 1, the commission directed Escoms to recover the arrears towards revision of tariff for April and May during October and November respectively without charging any interest.
Though this year’s tariff revision comes after a milder third wave of infections, it is going to deal a blow to consumers who are already reeling under price rise across spectrums, including skyrocketing fuel prices.
