Raelene Kambli, EH News Bureau
The Karnataka Electricity Regulatory Commission (KERC) has announced a 15 per cent reduction in tariff rates for hospitals within the state after hearing a plea from the Association of Healthcare Providers of India (AHPI).
It comes as a respite for hospitals within the state because as per the tariffs determined by the Electricity Regulation Commission, hospitals are charged at par with cinema halls and other commercial properties. This causes hospitals to spend around two to four per cent on electricity bills, thereby impacting the cost of services they provide. However, as per the new rate card for hospitals, they will be entitled to pay Rs 6 per unit for the first one lakh units and Rs 6.50 per unit, beyond one lakh units. These consumers paid Rs 1.50 more than what they will be charged henceforth. But the demand charges of Rs 170 per kilovoltampere (KVA) are applicable to them.
Commenting on this new development, Dr Director General, AHPI said, “Government treats healthcare as a commercial business which is completely unfair. Hence, we approached the KERC to reduce the tariff rates for hospitals. Prior to this the KERC had announced a hike in tariff through all sectors; however now they have withheld the hike for hospitals. They have now reduced the rates by 15 per cent for hospitals. This step will benefit hospitals significantly as they spend nearly 60 per cent of their cost on patient consumption. So reduction in electricity tariff will surely help them to bring down their cost of services in the time to come.”
Dr Alexander Thomas, Director & CEO of Bangalore Baptist Hospital and National Vice President of AHPI said, “Earlier, we spent around Rs 1.5 – 2 crores on electricity bills, with this new development we can now serve more poor patients. I would like to thank MR Srinivas Murthy, Chairman, KERC for lending his support and also Dr Devi Shetty who spearheaded this initiative.”