The Hindu : Karnataka News : FKCCI disappointed with tariff order

Online edition of India's National Newspaper
Wednesday, Dec 08, 2010
ePaper | Mobile/PDA Version

Karnataka

Karnataka

FKCCI disappointed with tariff order

Bangalore Bureau

BANGALORE: The industry bodies in Karnataka have expressed disappointment over the power tariff revision announced by Karnataka Electricity Regulatory Commission (KERC) on Tuesday.

KERC approved tariffs ranging from 30 paise to 35 paise for both HT and LT industries in city, urban and rural areas.

The Federation of Karnataka Chambers of Commerce and Industry (FKCCI) has expressed disappointment with the tariff orders issued by KERC.

N.S. Srinivasa Murthy, president, FKCCI, said the tariff order fails to engender “greater efficiency” and “good financial management” in the energy sector.

Mr. Murthy pointed out that the 23 paise set aside as Regulatory Asset is “unacceptable to industry” because it is a deferred liability, which will impose additional burden on consumers. He pointed out that the issue pertaining to the Government subsidy of Rs. 3,922.68 crore for power consumption by irrigation pumpsets remains unresolved.

Meanwhile, Karnataka Small Scale Industries Association (KASSIA) has also expressed disappointment over the tariff revision, especially the one concerning LT 5 and HT 2(a) categories that affect a large number of small scale industries. The tariffs have been increased despite presentation made in five sittings in different centres making a reference to the scope for reducing the tariff by improving management efficiency.

A release by KASSIA president S.S. Biradar said that it is unfortunate that the plea was not heeded and appealed to the authorities to reconsider the tariff particularly that of LT-5 and HT 2(a) to maintain status quo.

However, KASSIA has welcomed the “Time-of-the-Day” tariff continuance on optional basis and termed the reduction of 80 paise per unit for consumption in all non-peak period in the system as a progressive step.

Printer friendly page
Send this article to Friends by E-Mail

Karnataka