The Hindu : Public hearings on tariff review plea likely

Online edition of India's National Newspaper
Wednesday, Nov 12, 2003

Southern States

Southern States - Karnataka-Bangalore

Public hearings on tariff review plea likely

By Divya Sreedharan

Bangalore Nov. 11. Consumers upset over power companies' latest tariff review plea can heave a sigh of relief. They are likely to get a chance to publicly air their objections, this time too.

In about a fortnight, the Karnataka Electricity Regulatory Commission (KERC) will reportedly hold public hearings on the proposal of power companies to increase tariff.

This is a volte-face by the commission. In its September 17 order, it indicated that objectors would not be heard in person this time. It also directed Karnataka Power Transmission Corporation Ltd. (KPTCL) and the four electricity supply companies (escoms) to give objectors 10 days (from the date of advertising the proposed tariff) to respond. The power companies, in turn, were to reply in eight days from the last date for filing objections. The KERC was to consider suggestions/objections received from the public, the rejoinder issued by the licensees, and "issue an order expeditiously''.

The order, coming as it did after KPTCL requested the KERC (at a separate hearing) to allow only "experts" (and not all members of the public) to raise objections, had raised the hackles of many consumer organisations in the city. They insisted it was their fundamental right to "have a say" as an increase in tariff would burden consumers more.

Now, sources say, the KERC will hold a public hearing though there is no unanimity among its three members. But then, sources point out, both the old and new Electricity Acts say the commission should be transparent in its functioning. While KERC officials do not deny that they are "considering" a public hearing, they refuse to give a date.

Escoms and KPTCL advertised their proposed tariffs on October 16. The companies need Rs. 519 crore to bridge their revenue gap, but in the petition, they only sought to raise Rs. 68.86 crore, in the coming five months. The companies exempt domestic/AEH and farmer categories from the hike.

4,365 objections

The KERC received 4,365 objections, but 4,203 of these (mainly from the Mangalore region) did not have the necessary affidavits, and were considered invalid. Only 162 objections were considered, including those from the Bharatiya Kissan Sangha, V. Ranganathan from the Indian Institute of Management, Bangalore, A. Ramdas, BJP MLA, and D. Bheema Bhat from Dakshina Kannada.

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