Consumers and industries have welcomed the downward revision of electricity charges by Karnataka Electricity Regulatory Commission (KERC) and have described it as ‘’historic’’.
The ESCOMs across Karnataka including the Chamundeshwari Electricity Supply Corporation (CESC) had sought an upward revision ₹0.35 per unit for domestic consumers besides an increase of ₹0.15 per unit by way of fixed charges ostensibly to meet its revenue shortfall.
The CESC had justified its requisition for a higher tariff to bridge the revenue gap for the financial year 2024-25 which was pegged at ₹4,39.55 crore which also included a shortfall of ₹52.21 crore for the financial year 2022-23.
But the KERC on Wednesday issued a common order binding on all ESCOMs including CESC, to lower the rates and said that the marginal surplus for the financial year 2024-25 could be utilized for adjustment of tariff across different categories.
This will result in a significant reduction in tariff to commercial industrial and domestic consumers who are out of the Gruha Jyothi scheme.
Welcoming the decision the Mysuru Industries Association said not only was it being done for the first time in recent years but it was also historic as even the demand charges in case of HT Industrial and HT Commercial have been lowered. Mr.Suresh Kumar Jain of MIA said this will benefit the industries whose expenditure by way of electricity charges was constantly on the increase year after year since decades.
For LT domestic lighting energy charges have been redued by 110 paise per unit for consumption of above 100 units. The CESC had pegged its annual revenue requirement (ARR) at ₹7379.80 crore and the KERC revised it to ₹7137.30 crore.
The MIA said HT Commercial tariff has been lowered by Rs.1.25 per unit and for HT Industries, there is a relief of 0.50 paisa per unit. LT Industrial category will get a benefit of ₹1 per unit.
‘’One of the key demands of MSMEs and other industries was the permission to install separate meters for every unit in a complex and this plea has been admitted which will benefit all’’, said Mr. Jain.
Similar views have been expressed by other stakeholders including Mysore Chamber of Commerce and Industries, hotel owners association etc.
While the KERC move will not affect more than 95 per cent of the consumers who are covered by the Gruha Jyothi scheme and consume less than 200 units per month, it will benefit the remaining 5 per cent. Besides, it will also lower the government’s burden being incurred through cross-subsidy. The revised tariff will come into force with effect from April 1, 2024.
