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Power tariff in Karnataka one of the lowest in country: Report

ESCOMS are paying very less per KWH to public sector power plants compared to power bought from private players

Bengaluru: Whenever the state-owned ESCOMs announce their annual power tariff revision, consumers howl in protest. But if one gets right down to it and compares the power tariff rates of Karnataka with the rest of the states, one will find they are much lower.

An analytical report on the power tariffs and production costs has revealed that Karnataka is one of the states where power as well as production costs are practically rock-bottom.

According to the information released by the union power ministry, based on the data compiled by the Power Finance Corporation (PFC), the average cost of power generation for 2013-14 in Karnataka was just Rs 2.70 per Kilowatt-hour (KWH).

It was much higher in other states - Rs 4.25 in Gujarat, Rs 3.35 in Andhra and Rs 5.89 in Delhi. ESCOMS were charging Rs 3.80 per KWH up to 100 KWH per month for domestic use in the municipal corporation areas up to March 31, 2014. This was Rs 238.50 (in Andhra), Rs 405.38 in Gujarat, Rs 350 in Kerala. “This is also a very competitive rate compared to the tariff fixed by the power supplying agencies in the rest of the states,” said an officer from Bescom.

Another striking fact associated with the production and supply of power in the state, is that ESCOMS are paying very little per KWH while purchasing power from public sector power plants, compared to the power bought from the private players. KPCL is running tens of thermal and hydro electric power projects.

According to the data compiled by the Central Electricity Authority, in 2012-13, the rate of sale of power (Paise/Kwh) for power purchased from Jindal Energy Ltd (thermal-coal) was Rs 490 and Rs 477 respectively. The rate of the sale of power (paise/Kwh) for the power purchased from Udupi Power Corporation Ltd (thermal-coal) was Rs 412.70. Rate of sale of power (paise/Kwh) for power purchased from TATA Power Company Ltd (thermal-diesel) was Rs 1,249.

( Source : deccan chronicle )
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