The Hindu : Karnataka / Bangalore News : KERC reduces KPTCL transmission tariff

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Saturday, Jul 07, 2007
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Karnataka

Karnataka - Bangalore

KERC reduces KPTCL transmission tariff

Staff Reporter

State enters multi-year tariff regime

Bangalore: The Karnataka Electricity Regulatory Commission (KERC) on Friday reduced the transmission tariff of Karnataka Power Transmission Corporation Ltd. (KPTCL) while pronouncing the order under the multi-year tariff framework.

The tariff approved by the KERC will come into retrospective effect from July 1. It is for the first time that tariff has been fixed under the multi-year tariff system in Karnataka.

The three-member quasi-judicial body reduced the transmission tariff from the present 19.42 paise per unit to 17.48 paise for this year. Similarly, for 2008-09 and 2009-10, it has been fixed at 14.80 paise and 14.12 paise per unit respectively. The KPTCL had sought the increase of transmission tariff to 32.64 paise per unit for this year. In its petition before the power regulator, it had sought a further increase to 33.54 paise and 40.19 paise for 2008-09 and 2009-10.

However, announcing the tariff order, KERC Chairman K.P. Pandey said the commission had not accepted KPTCL’s proposal in full.

In terms of megawatt, the transmission tariff will be Rs. 83,199 crore a megawatt a month for 2007-08, Rs. 71,939 crore for the 2008-09 fiscal and Rs. 70,391 for the 2009-10 fiscal.

“This year, we have followed the multi-year tariff regulations and calculated the tariff based on demand instead of energy. The KPTCL had also requested us to calculate on demand basis, as it is more scientific. The Annual Rate of Return (ARR) fixed by KERC is subject to variation. It has been reduced as KERC has not taken into consideration the capital investment. If the investment is found to be fruitful, the ARR will be changed accordingly.”

The transmission loss level allowed by KERC for 2007-08 is 4.06 per cent, 4.03 per cent for 2008-09 and 4 per cent for 2009-10 financial years, he added.

Rider

The KERC has not accepted KPTCL’s proposal to pass on the additional power purchase costs of the Tannir Bavi Power Company Limited to the consumers again. Mr. Pandey said KERC has analysed the costs allowed by the commission in its tariff orders against the actual purchase costs incurred by KPTCL/ESCOMs (electricity supply companies) from 2002 to 2006.

The cost allowed by KERC for 2001-02 to 2005-06 fiscal is Rs. 28,622 crore whereas the actual power purchase cost is Rs. 28,300 crore.

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