The Karnataka Electricity Regulatory Commission (KERC) has increased the average retail electricity tariff for all low-tension (LT) and high-tension (HT) categories by ₹0.70 (~$0.008)/kWh for the financial year (FY) 2023-24.

It was increased by 8.31% to ₹9.12 (~$0.011)/kWh compared to ₹8.42 (~$0.10)/kWh in FY23.

The revised tariff will be applicable from April 1, 2023.

Of the increase, ₹0.57 (~$0.007)/kWh will be recovered through fixed charges, and the remaining ₹0.13 (~$0.002)/kWh will be recovered as energy charges.

The electricity supply companies (ESCOMs), in their submission, had recommended an average increase of ₹1.39 (~$0.017)/kWh in tariff.

As a relief measure and to encourage the adoption of electric vehicles in the state, the Commission reduced the tariff for EV charging stations to ₹4.50 (~$0.054)/kWh as against the existing rate of ₹5 (~$0.061)/kWh.

The green tariff of ₹0.50 (~$0.006)/kWh for renewable electricity on top of the applicable tariff for HT industrial and HT commercial customers will continue.

Also, the rebate of ₹0.50 (~$0.006)/kWh for micro and small industries will continue for another year.

Under the Discounted Energy Rate program, KERC has reduced the energy charges to ₹5 (~$0.061)/kWh as against the existing rate of ₹6 (~$0.073)/kWh. Earlier, the program applied to HT consumers, which has now been extended to LT Industries and commercial installations with a sanctioned load of 50 kW and above.

To simplify the tariff structure, the number of consumer categories has been reduced to 21 from 31.

The Commission has directed the distribution companies (DISCOMs) to set up a portal to maintain the details of PPAs executed and approved by the competent authorities to monitor the terms and conditions of the PPAs and also to regulate the payment of power purchase bills online.

The portal should be made operational within three months.

The Commission has set a revised transmission tariff for the Karnataka Power Transmission Corporation (KPTCL) as ₹163,031 (~$1,971)/MW per month for FY 2024 against the transmission tariff of ₹172,897 (~$2,090)/MW per month approved earlier.

Annual Revenue Requirement

The Commission approved a total Annual Revenue Requirement (ARR) of ₹581.09 billion (~$7.03 billion) as against ₹621.33 billion (~$7.51 billion) sought by the ESCOMs in their tariff applications.

Also, the Commission approved a net revenue deficit of ₹44.571 billion (~$539.02 million) for FY 2024, which included a revenue deficit of ₹17.201 billion (~$208.02 million) as per the annual performance review for FY 2022.

The proposed and approved ARR for ESCOMs

The Commission has approved a total ARR of ₹288.73 billion (₹3.49 billion) for the Bangalore Electricity Supply Company (BESCOM), whereas for the Mangalore Electricity Supply Company (MESCOM), the approved amount is ₹47.71 billion (~$577.2 million).

For the Chamundeshwari Electricity Supply Company (CESC), the approved ARR amount is ₹61.48 billion (~$743.7 million), whereas for the Hubli Electricity Supply Company (HESCOM) and the Gulbarga Electricity Supply Company (GESCOM), the approved ARR amount is ₹108.89 billion (~$1.32 billion) and ₹74.28 billion (~$898.5 million), respectively.

Hukkeri Rural Electric Cooperative Society

KERC has approved an ARR of ₹2.56 billion (~$30.96 million) for FY 2024 compared to ₹3.1 billion (~$37.49 million) approved by the Hukkeri Rural Electric Cooperative Society. The approved net revenue deficit for FY 2024 has been calculated as ₹22.8 million (~$275.73 million). The subsidy approved for free power has been set as ₹1.11 billion (~$13.42 million) for FY 2024.

ARR for Special Economic Zones

KERC has approved the revised ARR of ₹701.4 million (~$8.48 million) for FY 2024 against ₹573.4 million (~$6.93 million) proposed by the Mangalore Special Economic Zone. The approved net revenue deficit for FY 2024 has been set as ₹17.88 million (~$216,234).

The Commission has also approved the revised ARR of ₹259.76 million (~$3.14 million) for FY 2024 against ₹248.3 million (~$3.01 million) proposed by AEQUS Special Economic Zone. The approved net revenue deficit for FY 2024 has been calculated as ₹1.06 million (~$12,819).

In January this year, DISCOMs of Karnataka proposed revised tariffs for LT and HT consumers, which included grid support charges for captive open access power consumers.

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