Consumers who are not covered by the Gruha Jyothi scheme are in for a shock as the Chamundeshwari Electricity Supply Corporation (CESC) has sought a higher tariff for the financial year 2024-25.
Though more than 95 per cent of the CESC consumers enjoy free power under Gruha Jyothi and will not be directly impacted by the proposed revision, the State government’s burden by way of subsidy will increase adding to its financial woes.
For those who are out of the purview of the Gruha Jyothi including the commercial establishments and industries, the proposed higher tariff is steep. While the CESC has sought an increase of ₹0.15 per unit by way of fixed charges, it has sought a hike of ₹0.35 per unit as energy charges. This is bound to add to the financial woes of the category outside the Bhagya Jyothi scheme.
But the government will also feel the pinch as the existing energy charges under Gruha Jyothi and Kutira Jyothi are being subsidised by it at the rate of ₹8.59 per uni subject to a monthly minimum of ₹100 per installation per month. The revised tariff proposed is ₹8.94 per unit subject to monthly minimum of ₹110 per installation per month, as per the CESC’s tariff petition.
The petition submitted to the Karnataka Electricity Regulatory Commission, was published for the wider public in newspapers by the CESC early this month.
The CESC has justified the proposal for a higher tariff on the grounds that the projected revenue gap for the financial year 2024-25, was ₹439.55 crore while the total energy sales were projected at 8767.21 million units. The revenue gap also includes a shortfall of ₹52.21 crore for the financial year 2022-23.
The increase in fixed charges has been sought on the grounds that it is used to cover the operation and maintenance expenses. The repairs and maintenance are expected to cost ₹98.76 crore. The CESC had also determined the average cost of supply at ₹8.11 per unit for the financial year 2022-23 while the actual cost incurred was ₹8.75 per unit.
The proposed upward revision is set to evoke strong protests from the industrial and commercial establishments while the domestic consumers utilising over 200 units per month - and hence not eligible for Gruha Jyothi - will be a minority who can only groan at the higher costs.
The government may also oppose the higher tariffs as its burden by way of subsidy will increase and hence it will be left with little elbow room for financial maneuvering and allocation for other projects.
