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New Indian Express
13-07-2025
- Business
- New Indian Express
ESCOMS want power tariff hiked again
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.
New Indian Express
25-06-2025
- Business
- New Indian Express
After Karnataka HC order, government to repay Rs 800-1,000 crore to power users
'Many textile industries shut down' In 2009, FKCCI had filed a writ petition before the High Court, challenging the constitutional validity of amendments made to Section 3(1) of the Karnataka Electricity (Taxation on Consumption) Act, 1959. 'These amendments had extended levying electricity tax on fixed charges or demand charges which impacted consumers. The court order declared as unconstitutional levying electricity tax on fixed charges and demand charges from 2003-13,' Balakrishna said. Energy expert MG Prabhakar said the government had levied 20 paise per unit on LT consumers and 9% per unit on HT consumers. If this is calculated, it is over Rs 60-100 crore per annum and this amount was collected for 10 years. Consumers are also entitled to get the interest government agencies generated on the amount over the years. Karnataka Textile Mills Association president C Valliappa said due to high electricity tariff charges, many textile industries shut down. The order is a relief, but has come late. Members of various industries associations said they were filing a petition on the government proposal to levy a cess on consumers for the installation of smart meters. 'The energy department is discussing with finance department to levy 2% cess on RDPR, UDD, BWSSB and other agencies that owe them around Rs 10,000 crore. As these agencies do not have money, the burden will be passed on to consumers, which is unconstitutional,' say industry experts. An energy official said, 'We don't want to comment on the amount. We will go through the order copy which we are yet to receive. The amount to be cleared is also subject to bills the escoms have.'
