Electricity Rate | Electricity price hike for festival Shock: Price hike in the name of fuel adjustment fee

Bengaluru: Karnataka Electricity Regulatory Commission (KERC) has issued an order on Friday revising the fuel cost adjustment charge (fuel cost adjustment charge) for the next 6 months with effect from A.1 in the wake of the increase in the purchase price of coal.

KERC had earlier issued an order on September 19 allowing all electricity supply companies to collect fuel adjustment charges from consumers for the next six months. Due to this order, the electricity tariff will increase and will further burden the consumers. As per KERC (Energy Cost Adjustment Charges) Rules-2013, the energy adjustment charges have been revised to be applicable to all electricity supply companies.
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All Eskoms are buying power from Central Power Generation Centre, Karnataka Power Generation Center and Udupi Power Corporation Limited. Bescom had submitted a proposal to KERC on August 30 to charge an 80 paise fuel cost adjustment fee due to an increase in power purchase cost of Rs 643 crore from April to June 2022. Similarly, Mescom had submitted a proposal to KERC on September 1 to collect a 55 paise fuel cost adjustment fee due to an increase in power purchase cost of Rs 75.15 crore.

Cesc had submitted a proposal to KERC on September 2 to levy a 70 paise fuel cost adjustment fee, which has increased the power purchase cost by Rs 119 crore. Hescom had submitted a request to KERC on September 1 to recover an 81 paise fuel cost adjustment charge due to an increase in power purchase cost of Rs 273 crore. JESCOM had submitted a request to KERC on September 2 to collect a 57 paise fuel cost adjustment fee due to an increase in power purchase cost of Rs 134 crore.
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Fuel Adjustment Fee is revised every 3 months. However, this fee has been revised to be applicable for 6 months in order to avoid additional burden on the customers. Fuel adjustment fee has been increased in the wake of significant increase in coal purchase cost and it is decided to collect this amount from October to March 2023.

Fuel Differential Tariffs (Energy Cost Adjustment Charges) Rules-2013, on account of price differential in fuel cost on electricity purchased from specified thermal power plants, as per the schedule in force from time to time, is proposed before KERC every three months. The Commission shall review the proposal and from time to time order levy or reduction of fuel differential rate. When the price of coal and oil increases, the adjustment cost increases, when it decreases, the cost decreases.
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Rate increase per unit: Company Rate Increase (in paise)

BESCOM-43

Mescom- 24

Cesc-34

Hescom- 35

JESCOM-35