Karnataka’s energy costs and power tariffs increased by Rs 2.89 per unit in June despite Siddaramaiah’s state government’s free electricity pledge. Now the citizens will have to pay an additional Rs 2.89 per unit if their power usage exceeds the 200 units slab while paying the power bill.
According to the reports, the fuel and power purchase cost adjustment (FPPCA), which includes back payments from April, represents this additional expense. Due to billing complications and a lack of time, the FPPCA for this January could not be implemented in March. From June, the same FPPCA of Rs 1.49 per unit would continue to be charged. In addition, there is a 70 Paisa + 70 Paisa increase from April to June, which results in a total price increase of Rs 2.89 per unit if more than 200 units are used.
The Karnataka government released comprehensive instructions on Monday for the execution of the Gruha Jyothi scheme, which guarantees free electricity to all families with monthly electricity usage below 200 units. Additionally, the sharp increase in monthly power bills that Karnataka’s Electricity Supply Companies (Escoms) sent on Monday confused thousands of residents.
The ‘fixed costs’ in the electricity bills produced by Escoms for June experienced a significant hike, ranging from Rs 50 to Rs 75 depending on the usage load. According to a Senior Bescom official, the invoices were created by the price decision issued by the Karnataka Electricity Regulatory Commission (KERC) notwithstanding widespread criticism of the Escoms.
A tariff increase of 70 paise was mandated by the KERC on May 13 with retroactive effect beginning on April 1, 2023. Similarly, the KERC updated the tariff a few days ago by including changes for gasoline and electricity purchase costs. “As KERC ordered us to collect the pending dues for April too along with that of May, the bill issued in June appears to be inflated. They will become normal from next month onwards,” a senior engineer with Bescom was quoted as saying.
Reportedly, Karnataka CM Siddharamaiah also commented on the issue and said that the decision was solely taken by the Karnataka electricity regulatory commission (KERC) and that the state government did not interfere. “We did not decide to hike the electricity tariff. There is Karnataka electricity regulatory authority, which has decided. It had been decided in the past. We have only implemented it,” he explained.
Following the June 2 cabinet meeting, CM Siddaramaiah said that no home using less than 200 units per month will be required to pay power bills. However, the administration unveiled qualifying requirements on Monday. Energy minister KJ George said that the scheme will require Rs 13,000 crore annually and 96 per cent of households with electricity connections will be covered under the scheme.
The government would figure up a household’s typical annual use and provide them a 10 per cent usage cushion. “If this falls within 200 units, the household is eligible for free electricity. If a household crosses its annual average consumption and the 10 per cent buffer, they will have to pay for the extra units,” the minister said.
Himachal Pradesh also raised power tariff by 86 paise and further by 22 paise per unit
The Congress party had promised this much-touted schemes of granting 200 units of free electricity to all the houses in its 2023 election manifesto. However, it was reported that in Himachal Pradesh, the Congress-led state government hiked 86 paise per unit in power tariff for the financial year 2023-24 after promising free units of electricity.
In February this year, the Himachal Pradesh State Electricity Board Limited (HPSEBL) proposed a hike of 86 paisa per unit in power tariff for the financial year 2023-24. Electricity up to 125 units per month is free for domestic consumers in the state. The Congress government had promised to increase the free power up to 300 units but ended up putting an extra financial burden in the form of subsidy on HPSEBL.
Also, in April this year the Himachal Pradesh Electricity Regulatory Commission (HPERC) increased the electricity tariffs for all consumers by 22 paise per unit for the financial year 2023-24.
Punjab faces massive debt burden after govt rolled out 300 units of free power to the residents.
A similar situation could be seen in the state of Punjab ruled by AAP. On May 15, just two days after Aam Aadmi Party (AAP) registered a thumping victory in the Jalandhar Lok Sabha by-poll, the Bhagwant Mann-led Punjab Government increased the power tariff for all categories. After three years, the Punjab State Electricity Regulatory Commission (PSERC) announced an increase of 8.64 percent in the electricity rates. PSERC increased fixed charges as well. The average cost per unit is now Rs 7.04 compared to Rs 6.48 per unit earlier. Notably, compared to neighbor states, including Haryana and Himachal Pradesh, the consumers of Punjab pay anywhere between Re 1.01 to Rs 0.39 more per unit.
Chief Minister Bhagwant Mann had said in a statement that the revised tariff would not put pressure on the consumers and the government would bear the cost for domestic and agriculture consumers. However, it was reported that the increase in tariff was introduced to meet the annual revenue requirement of the Punjab State Power Corporation Ltd. Several factors have increased the production cost, including higher prices for coal imports, increased rate of short-term power purchase from power exchange and normal inflation.
CM Mann in April last year had promised 300 units of free electricity to every household in the State. The same was provided to the citizens in July 2022. To note, the state is reeling under a massive debt burden. Three econimists in February this year had written to the CM highlighting that the state situation had worsened ever since the government had rolled out 300 units of free power to the residents.
