Karnataka - Mysore   

MGP opposed to proposal for increasing power tariff

Special Correspondent

The power supply corporation has mooted an increase of an average of 40 paise a unit

MYSORE: Mysore Grahakara Parishat (MGP) has opposed the power tariff hike mooted by Chamundeshwari Electricity Supply Corporation (CESC).

In a release here on Tuesday, G.S. Nayak of the MGP said that CESC, which supplied power to Mysore, has filed an application before the Karnataka Electricity Regulatory Commission (KERC) to increase tariff at an average of 40 paise a0 unit for all consumers, excepting those under the "Bhagya Jyothi" and "Kutira Jyothi" schemes and owners of irrigation pump sets.

The KERC had invited objections to the proposed tariff hike before August 11.

Mr. Nayak said that the Electricity Act, 2003, was the fundamental law governing power supply. According to section 61(g), the tariff should progressively reduce and eliminate cross-subsidies. The MGP said the tariff hike proposal went contrary to these guidelines.

The exclusion of "Bhagya Jyothi" and "Kutira Jyothi" schemes and irrigation pumpsets from tariff hike would increase the cross-subsidy from other users of electricity, it said.

If the Government wanted to subsidise these classes of users, it should reimburse CESC the cost of the subsidy.

The MGP said that according to the Act, power tariff should progressively reflect the cost of power supply. Hence, the KERC had to first determine the cost of supply by the generating companies to CESC.

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