Karnataka electricity bill: Why residents are paying more in June
Karnataka residents were in for a shock when they received their latest electricity bills. Most of them saw a steep increase in their electric charges. For some, the bill amount was double the usual. A few people even received negative billing. People were first confused. Then confusion gave way to anger. Let's see what led to the sudden increase in electricity charges in Karnataka.
Why does this story matter?
Karnataka recently witnessed an assembly election that saw the Congress defeat the Bharatiya Janata Party (BJP). The June electricity bill was the first under the new government. During the election campaign, Congress had promised 200 units of free electricity every month. Therefore, people were perplexed when they received their latest electricity bills. It was not the start they hoped for under the new regime.
People are being charged Rs. 7 per unit
People across Karnataka saw an increase in their electricity bills. A Bengaluru resident told News18 how her electricity charge went from Rs. 800 to Rs. 1,500. When she contacted BESCOM (Bangalore Electricity Supply Company), she was told the rate per unit is Rs. 7 compared to Rs. 3 earlier. People who consume more than 100 units are being charged Rs. 7 per unit.
A few people received negative billing in June
The electricity problem in Karnataka isn't limited to steep increases. Many received error-ridden electricity bills too. A Mangaluru man's electricity bill for June was Rs. 7.71 lakh. MESCOM (Mangalore Electricity Supply Company) considered it an error. Meanwhile, a woman in Bengaluru received a bill of Rs. -111. BESCOM attributed it to a software error. Power outages have also become frequent in Karnataka.
Electricity supply companies sought retrospective implementation of new tariff
So why the sudden increase in electricity bills? A BESCOM official told News18 about a proposal from electricity supply companies the Karnataka Electricity Regulatory Commission (KERC) approved right after the election code of conduct was lifted. The proposal sought to increase power prices by 70 paise per unit. The companies also wanted the new tariff to be implemented with a retrospective effect from April.
The June bill carries arrears and adjustment charge
In simple terms, the June bill carries new power prices and arrears from April. The bill also includes an additional adjustment charge announced by the Central government in December. According to the official, the adjustment charge was previously billed quarterly. Due to the Centre's new direction, it is being collected monthly. That was also reflected in the June bill.
KERC reduced the number of slabs to 2
The increase in the June bill was also due to the reduction of slabs by the KERC. There are only two slabs now. People who use 0-100 units are billed Rs. 4.75, while usage above 100 units costs Rs. 7.
Industry associations are protesting against the hike
Karnataka residents are outraged by the hike in electricity bills. Protesting against the hike, the Huballi-based Karnataka Chamber of Industry and Commerce (KCCI) is observing a bandh today (Thursday). Industry organizations across North Karnataka have also joined the bandh. Chief Minister Siddaramaiah has promised to meet industry associations on Friday to discuss the tariff hike.
Electricity bills will come down from August
The hike in electricity bills won't be forever, though. The retrospective billing of the adjustment charge will appear negative from the August bill as the Karnataka government sought six months from the Centre for its implementation. Meanwhile, the registration for the Gruha Jyoti subsidy scheme, which will provide free electricity for up to 200 units, has begun. It will be launched on August 1.
