Consumers will have to pay an extra 43 paise per unit for electricity from October 2022, as the Karnataka Electricity Regulatory Commission (KERC) has accepted an application from Bangalore Electricity Supply Company (Bescom) to collect the amount as Fuel Cost Adjustment Charge (FAC).
The FAC will be charged on every unit of energy from October 2022 to March 2023. The increased price of coal has led to the revision of cost, Bescom announced on September 23.
“Bescom purchases thermal power from Central Power Generating Stations (CGS), Karnataka Power Corporation Limited (KPCL) and Udupi Power Corporation Limited (UPCL) to meet its requirements. Due to the increase in coal prices, Bescom has paid additional variable charges of ₹643 crore for power purchase for the period from April 2022 to June 2022. Subsequently, Bescom had filed an application before the KERC on August 30, 2022 to revise the FAC of 80 paise per unit,” said a senior Bescom official.
This is the second time in six months that the price per unit of electricity has been revised. Earlier in July, the KERC had revised the FAC allowing Bescom to collect 31 paise on each unit from July to December. The move had drawn flak from citizens and opposition leaders with JD(S) leader H. D. Kumaraswamy condemning it on social media.
Bescom officials further said that the FAC will be adjusted by the KERC depending on the market situation. “If coal prices decrease, the FAC will decrease accordingly,” an official said.