Shobha Karandlaje signals Power tariff hike

Mangalore Today News Network

Bagalkot, June 30, 2011:The power tariff hike of 88 paise in the state is crucial, as this is the only way the electricity supply companies (Escoms) can survive, opined energy minister Shobha Karandlaje, during the power purchase agreement between the NTPC and five Escoms on a 100MW wind power project coming up at Guledagudda in Bagalkot district.

“The price of imported coal has skyrocketed and we procure huge tonnes of coal forRaichur and Bellary thermal plants. The farmers have to be given power, which is unaccounted and unmetered as of now. This puts the state distribution companies in a crisis. Hence, we have filed a tariff petition to the Karnataka Electricity Regulatory Commission (KERC) for an 88 paise hike,” said Karandlaje.

The wind power and solar power projects are coming up in state with the help of National Thermal Power Corporation (NTPC) and Bharat Heavy Electricals Limited (BHEL) is also showing interest in Karnataka, she said. The minister also assured full support for renewable energy projects.

“We are signing an MoU with the NTPC and Escoms for a 100MW wind power project. We will have the foundation stone-laying ceremony for a 5MW solar photo voltaic project in Shivasamudram. Soon, we hope to add 500MW to the grid,” she added.

Also, the rate of the wind power for the consumer is yet to be finalised. Sources said it would be determined by the regulations of the Central Electricity Regulatory Commission (CERC) after the completion of the project.

Right now, the prices prescribed by the CERC may vary from Rs5 to Rs20.