Govt wants to increase industrial and commercial electricity tariff in Karnataka
The revenue gap occurs at the electricity supply company (escom) level when there is a deficit between the tariff collected and the expenditure, including power purchase cost, that is incurred.
The commission has admitted the review petition.
In this year's (FY 2025 – 26) budget, the government of Karnataka had announced a subsidy of ₹16,021 crore for IP sets, and ₹10,101 crore for Gruha Jyothi scheme. However, in the tariff order passed for this year, KERC stated that the subsidy required to provide free power for IP sets is ₹20,095.44 crore.
In the petition, the government has also stated that in addition to the subsidy amount of ₹16,021 crore announced in the budget, the government will release an additional subsidy of ₹2,362.47 crore to mitigate the overall shortfall in revenue.
Industrialists and experts from the power sector argued that KERC should not have admitted the review petition, as it did not have the necessary criteria.
'A review petition under the Code of Civil Procedure (CPC) is a mechanism for a court to reconsider its own judgement or order. This is typically done when there is a mistake or error apparent on the face of the record, new and important evidence is discovered, or another sufficient reason exists. It is a way to correct errors, and not meant to be a second chance to argue the case on merits,' said M. G. Prabhakar, former advisory member, KERC.
However, KERC officials said that there are grounds to admit the petition and seek public opinion.
'When the government itself is appealing, we can admit the petition. We have now directed escoms to publish newspaper advertisements and hold public hearings on the matter. We will take a decision based on the recommendations of all stakeholders,' P. Ravikumar, Chairman, KERC told The Hindu.
Industrialists, who have already been burdened by a plethora of cess, are dreading an increase in tariff, especially since the recent tariff petition is a multi-year tariff petition.
Shiva Kumar R., former president of Peenya Industries Association (PIA), said, 'Industries are already in dire straits. Especially in Bengaluru, the infrastructure is still new, and we face a lot of hardship. The government wants us to increase minimum wage. They have already imposed a tariff of 36 paise per unit for this year to cover the pension and gratuity of escom employees. We are also paying solid waste management (SWM) cess. Instead of burdening us so much, if industries are encouraged, then economic activity and employment generation will increase. Otherwise, how are micro and small-scale industries supposed to operate?'
He added, 'We strongly oppose this petition. We will definitely file our objections when a public hearing is called.'
For FY 2025 – 26, the energy charges for industrial consumers are ₹6.60 per unit, and for commercial consumers, it is ₹5.95 per unit. The energy charges for both these categories were reduced in the tariff order while the charges for the LT 4(a) category went up from ₹5.65 per unit to ₹8.30 per unit.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Hindu
8 hours ago
- The Hindu
T.N. government establishes Chennai Institute of Journalism
The Tamil Nadu government has sanctioned a sum of ₹7.75 crore for the Chennai Institute of Journalism (CIJ). The institute, set up under the Companies Act, 2013, will offer a postgraduate diploma programme in journalism from the 2025-26 academic year. An official release issued by the State government said N. Ravi, former Editor-in-Chief of The Hindu and Director, Kasturi and Sons Limited, has been appointed the CIJ board's chairperson. Former Readers' Editor of The Hindu A.S. Panneerselvan has been named the institute's director-general. Mr. Panneerselvan said the notification for admission would be issued soon. The classes are expected to commence in the third week of August this year. The institute was being established on the directions of the Chief Minister. Minister for Tamil Development, Information, and Publicity M.P. Saminathan handed over the orders to Mr. Ravi and Mr. Panneerselvan in the Secretariat in Chennai on Friday.
Mint
12 hours ago
- Mint
Cooperative banks insist on credit scores for loan approvals; farmers up in arms: Report
Farmers carried out a demonstration against the new rule of cooperative banks where they insist on members getting credit scores for availing farm loans and cattle maintenance loans, at Srivilliputtur, reported The Hindu. The protest call was given by Tamilaga Vivasayigal Sangam. Aside from this, its president N.A. Ramachandra Raja, members of Primary Agricultural Cooperative Credit Societies P. Ammaiyappan and A. Vijayamurugan took part in the protest held in front of the office of Deputy Registrar of Cooperatives. Ramachandra Raja said the Reserve Bank of India in 2024 directed cooperative banks that any crop loan up to ₹ 2 lakh to the members should be given without any collateral. 'The maximum crop loan a member could get is only ₹ 3 lakh. However, when the loan amount surpasses ₹ 2 lakh, the farmers are supposed to give collateral for the entire crop loan,' Ramachandra Raja said. Stating that when the members are giving collateral for higher amounts of loans and no collateral is required for loans up to ₹ 2 lakh, he asked, why do the Cooperative societies ask for credit score. He said that loan applications of several members were rejected on lower CIBIL score. 'This is because the members could have got loans from any nationalised banks for their other domestic needs like education loan or other loans. Why should the cooperative banks be bothered about loans got from other banks?' he asked. Besides, the members were also told to pay ₹ 120 for fetching CIBIL score. Disclaimer: Mint has a tie-up with fintechs for providing credit, you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit score. Mint does not promote or encourage taking credit as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit. For all personal finance updates, visit here
The Hindu
15 hours ago
- The Hindu
Bihari migrants in Bengaluru in dilemma over SIR
Migrant labourers from Bihar living in Bengaluru are divided over whether to return to their hometowns to fill out the enumeration form issued by the Election Commission as part of the Special Intensive Revision (SIR) of the electoral rolls. In the lead-up to the Bihar elections, expected to be held in November, the Election Commission is undertaking a voter verification drive, the first in 22 years. Many Bihari migrants working in the city expressed mixed reactions when The Hindu spoke to them. Most of them cited time constraints, travel expenses, and a tedious process, even as the Election Commission continues to push the SIR aggressively. Midway through work Guddu Kumar, a native of Chhapra in Bihar, explained that workers usually travel home in groups for extended periods after completing their contracted work. However, at the moment, they are unable to go either alone or as a group, because they are in the middle of a project. 'If we leave midway and stay back for a long time, the current manager won't re-hire us when we return. Finding a new job again is a tedious task,' said Kumar. His co-workers at the construction site agreed with him. Ashu Raj, who works at a construction site in Ejipura, said that returning home now would be difficult because they would have to travel again for the elections and the upcoming festivals. During festivals 'Diwali and Chhath Pooja are the two festivals we always look forward to. If we go now, it will be hard to afford another trip soon, especially since many of us just returned in February,' Mr. Raj said. He added that some managers withhold part of the workers' salary and release it only when they go home, so many currently lack the savings needed for travel. A contractor, who wished to remain anonymous, confirmed this. 'It's not a very common practice, but yes, some managers do withhold wages to ensure workers don't leave a project halfway,' he said. When asked whether they were concerned about missing the chance to vote, some workers said the hassle of going back and forth isn't worth it. They believe and hope the process will be available again when they return home for the festivals. Potential consequences However, others were more cautious and determined to participate in the process, fearing potential consequences. 'There are talks that the government might stop issuing rations and other essential benefits to those who don't complete the SIR. If that happens, our families back in the village will suffer,' said Ramesh, a tile worker near Suddaguntepalya. A few workers, whose names were already included in the 2003 revision, said their families were able to complete the current process on their behalf by submitting identity documents, so they didn't have to travel back. However, officials did not accept documents in the absence of voters if they were registered after 2003. Though EC has given the option of online registration, most The Hindu spoke to said they were unaware of it. Some said they did not have the necessary documents in Bengaluru to complete the process online.
