Monday, September 28, 2009

BWSSB leads ‘no power tariff hike’ chorus

BWSSB leads ‘no power tariff hike’ chorus
BWSSB leads ‘no power tariff hike’ chorus

Express News Service
First Published : 24 Sep 2009 05:18:00 AM IST
Last Updated : 24 Sep 2009 06:57:52 AM IST

BANGALORE: The final hearing by Karnataka Electricity Regulation Commission (KERC) to discuss the tariff hike proposed by Karnataka Power Transmission Corporation Limited (KPTCL), drew flak from various quarters including the government-owned Bangalore Water Supply and Sewerage Board (BWSSB).

BWSSB and four other stakeholders, which took part in the hearing, argued that the 11 paise hike (from 19 paise to 30 paise) was not according to the specified framework.

According to BWSSB, KPTCL had not complied with the multiyear tariff (MYT) framework, and that the proposed hike was based on the actual cost incurred by KPTCL, and not as per the parameters specified in the MYT framework.

It also said that a 50 per cent hike in tariff is not proportionate to the increase in the amount of power KPTCL can deliver.

Federation of Karnataka Chamber of Commerce and Industries (FKCCI), Consumers Care Society, Canara Chamber of Commerce, Laghu Udyog Bharathi and independent petitioner D Subramanya Bhat, are the others to file objections alongside BWSSB.

While Consumer Care Society said that tariff fixing was usually sought on per megawatt/per hour (per unit) basis and not on per kilowatt/per hour basis like in KPTCL’s application.

They also argued that there had been problems in reporting the incurred costs. “KPTCL has purchased power for crores of rupees over the last three to four years.

This is in violation of the 2003 Electricity Act, as it had restricted KPTCL from trading in power.

These costs have been shown in the application as power purchase costs and this is a wrong picture,” a lawyer pointed out.

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