ESCOMS want power tariff hiked again

New Indian Express

13-07-2025

BENGALURU: The Electricity Supply Corporations Limited (ESCOMs) have sought an amendment from Karnataka Electricity Regulatory Commission (KERC) to fill their revenue gap of Rs 4,620 crore by increasing power tariff for commercial and industrial consumers.
This pending amount is pertaining to the subsidy given to LT-4(A) consumers, the irrigation pump sets (IP sets) consumers. To hike the tariff mid-fiscal, the ESCOMs filed an appeal before the KERC for the first time on March 23, 2025, and the last hearing was held on July 8.
The KERC has permitted the ESCOMs to seek public opinion from all stake holders within 30 days and submit the details to the Commission through an affidavit.
Experts and officials in the energy department said that usually tariff revisions are done during different financial quarters to accommodate the fuel adjustment charges.
But a revision of this sort, has been sought for the first time, as it is becoming difficult for the government to clear dues, an official seeking anonymity said.
Noted energy expert, MG Prabhakar said, the law does not permit ESCOMs to make such amendments mid-fiscal.
He said the subsidy that the government has given to the IP sets is more, which the ESCOMs are finding difficult to manage. So now to match the revenue, the ESCOMs want to pass on higher tariff to the consumers. The same will be done gradually for the Guha Jyothi scheme.
He said that for the year 2025-26 the approved sale of IP sets is 24868.10 million units and the government has a liability of supplying power to them at Rs 8.30 per unit.
This tariff was fixed by KERC. But as per the Karnataka Electricity Act 2003, section 63, sub-section-4, no tariff or part of any tariff may ordinarily be amended, more frequently than once in any financial year, except in respect of any changes expressly permitted under the terms of any fuel surcharge formula as may be specified. Otherwise any review is not permitted, he said, quoting the orders.
Members of various industrial bodies said they will file their objections before the KERC and the ESCOMs.