Karnataka Electricity Regulatory Commission Approves Tariff Revision for FY 2024-25
One of the notable aspects of the tariff revision is the utilization of marginal surplus identified for FY 2024-25 for readjustments across different tariff categories.
March 01, 2024. By Abha Rustagi
One of the notable aspects of the tariff revision is the utilization of the marginal surplus identified for FY 2024-25 for readjustments across different tariff categories. This move has led to a substantial reduction in tariff rates for Commercial, Industrial, and Domestic Consumers consuming above 100 units per month.
Notable highlights include reductions in energy charges for Low-Tech (LT) Domestic Lighting consumers using above 100 units per month, with a decrease of 110 paise per unit. Similarly, High-Tech (HT) Commercial consumers will benefit from a reduction of 125 paise per unit in energy charges and INR 10 per KVA in demand charges.
Similarly, significant reductions have been made in energy charges and demand charges for Industrial consumers, along with other categories such as HT Hospital & Educational Institutions and HT private lift irrigation.
Furthermore, the introduction of Time of the Day (ToD) pricing during morning peak hours and the continuation of the Special Incentive Scheme (SIS) for night consumption signify efforts towards promoting energy efficiency and incentivizing consumers.
The approval also entails measures such as the reduction of cross-subsidization levels, the introduction of optional self-reading of meters, and the provision for multiple connections to premises for LT consumers, among others.
In terms of financial implications, while the ESCOMs proposed a 7.53 percent increase in tariff to bridge the revenue deficit, the KERC has approved a net revenue surplus for FY 2024-25, which has been utilized for tariff readjustments and rationalization. Additionally, directives have been issued to ESCOMs to set up necessary portals and systems for online monitoring of power purchase bills, optional prepaid metering, and self-reading of meters, among other initiatives.
The revised tariff, effective from April 1, 2024, reflects a balanced approach towards ensuring adequate revenue recovery for ESCOMs while providing relief and incentives to consumers.
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