AAP Karnataka criticises electricity tariff hike

Aam Aadmi Party (AAP) Karnataka unit has criticised Karnataka Electricity Regulatory Commission (KERC) decisions as anti-people. “It is highly unfortunate that the consumer advocacy in KERC is totally defunct. The KERC has become a mute spectator to the bald, irrational and despotic tariff hikes ritualistically carried out every year,” said Ravi Krishna Reddy, convener of AAP Karnataka.

Opposing the proposed electricity tariff hike of 80 paise across all the consumer categories, AAP in a submission before the KERC public hearing said the tariff hike will affect every one.

“The tariff hike will impact further in the present scenario of industrial slow down and will force many small and medium scale industries to shut shop. While the middle class is bleeding, the lower strata of the society are nearing an economic death due to price rise,” said Reddy.

Even when the distribution companies in the State have not filed any data or documentation, KERC routinely takes up the tariff hike. In fact, the supply companies, in gross contravention of the specific orders passed by Appellate Tribunal for Electricity have not submitted the cost of supply to each consumer category.

Reddy said, “Apart from that, four other forms are not even filled up. The audit report has been submitted. Even when some accounting statements are made available, KERC is passing it on to the consumers without verification.”

Even though ₹5,200 crore is spent by the Government of Karnataka as power subsidy to the farmers, the companies do not bother about the farmers, and indiscriminate load shedding and intermittent power supply at abysmally low voltage are done.

In fact, the actual number of IP Sets energised in the State as on October 31, 2014, is 18.85 lakhs. However, the KERC is forcing the government to pay subsidy for 21.34 lakh IP sets (that too below 10 HP).

“On a very conservative estimate, the total excess IP Set subsidy received by these companies is to the tune of around ₹900 crore. Even when they are receiving ₹5,200 crore (including the excess subsidy amount of ₹900 crore) in the name of farmers, the supply companies are claiming to supply free power to the farmers,” Reddy explained.

“On top of it, KERC is accepting these figures without any empirical verification. If this excess money claim made by ESCOMs is accounted for, the tariff in the State should be reduced. The government should order a judicial enquiry into this anomaly, and alongside the CAG must also investigate into the matter urgently,” he added.