Why Bengaluru Residents Will Pay Less for Electricity in September

Bengaluru residents will have a reason to cheer in September as they will pay less for their electricity bills. The Bangalore Electricity Supply Company (Bescom) has announced that it will charge the Fuel and Power Purchase Cost Adjustment (FPPCA) for consumers at Rs 1.15 per unit for the billing cycle of September, a 90-paise drop from the previous month’s rate of Rs 2.05 per unit.

The FPPCA is a variable component of the electricity tariff that reflects the changes in the fuel and power purchase costs incurred by Bescom. The FPPCA is calculated monthly and is added to the fixed tariff approved by the Karnataka Electricity Regulatory Commission (KERC). The FPPCA may increase or decrease depending on the market conditions and the availability of power.

The reduction in the FPPCA for September is expected to bring relief to the consumers and can be attributed to a decrease in the buying power prices. Bescom said that it had approached the KERC in June and got approval to adjust the FPPCA charges for six months, with 50 paise per unit for the first three months (July to September) and 51 paise per unit for the next three months (October to December).

Bescom also said that the beneficiaries of the Gruha Jyothi scheme, which offers up to 200 units of free electricity for households with an annual income of less than Rs 1.2 lakh, will have their FPPCA charges covered by the government, alleviating the financial burden on certain consumers.

The FPPCA reduction will be reflected in the September bills, which will show a rate of Rs 1.15 per unit, down from Rs 2.05 per unit in August. Bescom said that the actual calculation for FPPCA this month stands at 65 paise per unit, demonstrating a significant reduction compared to the previous month.

Bescom Managing Director Anand Bilagi said that the fuel adjustment charges underwent changes following a new regulation by the Ministry of Power last December. Instead of quarterly calculations, these charges are now assessed monthly under the FPPCA charge effective since March.

However, not everyone is happy with the FPPCA revision. BJP IT cell head Amit Malviya slammed the Congress government over the power tariff hike. He tweeted that the Congress government in Karnataka has hiked power tariff again and accused it of failing to fulfill its promises and putting more burden on the people.

Bescom supplies power to eight districts in Karnataka, including Bengaluru Urban and Rural, Kolar, Chikkaballapur, Tumakuru, Davangere, Chitradurga, and Ramanagara. It has about 1.3 crore consumers and caters to a demand of about 3,500 MW.