Mysuru industries oppose CESC’s proposed tariff hike to offset subsidy to IP sets

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Industries successful Mysuru person opposed the connection by the Chamundeshwari Electricity Supply Corporation (CESC) to rise tariffs for concern and commercialized consumers to offset outgo of subsidized powerfulness proviso to Irrigation Pump (IP) sets for agriculture.

The projected revision, presently earlier the Karnataka Electricity Regulatory Commission (KERC), seeks to retrieve portion of the subsidy shortfall arising from the powerfulness supplied to cultivation pump sets.

The CESC and different ESCOMs successful the State, done a Review Petition filed with KERC, sought modification of the KERC Tariff Order-2025. It was contended by CESC and different ESCOMs that determination was a backing spread arsenic the State authorities had budgeted ₹16,021 crore towards subsidy support, portion the existent request is estimated astatine ₹20,640 crore, frankincense resulting successful a shortfall.

To span this difference, the ESCOMs person projected to levy a higher tariff for concern and commercialized consumers.

Hence, the CESC and different ESCOMs person sought to summation the vigor charges for LT-5 (industrial) consumers from ₹4.50 to ₹5.20 per unit, portion for HT-2A (industrial) consumers, the complaint would beryllium accrued from ₹6.60 to ₹6.70 per unit. Fixed charges would besides beryllium raised by ₹15 to ₹20 per horsepower (HP) depending connected the category, arsenic per the proposal.

Industries record objections

The Mysore Industries Association (MIA) has taken beardown objection to the proposal, arguing that industries are being asked to carnivore the load of the shortfall, which is simply a effect of authorities policy.

MIA president P. Vishwanath and caput Suresh Kumar Jain, successful their objection earlier the KERC, said this was an effort to retrieve the government’s subsidy liability from industries.

The Association members person stated that the State authorities has repeatedly defaulted connected timely subsidy payments to the ESCOMs and the load was being passed connected to the industries.

The MIA argued that the reappraisal petition filed by the ESCOMs was not maintainable arsenic it sought to rework the tariff plan and subsidy allocation. These are matters that should beryllium pursued done an entreaty to the Appellate Tribunal for Electricity (APTEL), it added.

Mr. Jain said energy charges for industries successful the portion was already connected the higher broadside erstwhile compared with different concern clusters successful southbound India.

Any summation would impact outgo competitiveness, peculiarly for micro, small, and mean enterprises and marque them economically unviable, helium added.

There are besides concerns among the stakeholders that higher tariffs could discourage caller concern and strain existing units that were already tottering owed to the arket situation.

The MIA has urged the KERC to cull the petition and to germinate a structured roadmap for gradual simplification of cross-subsidy, truthful that concern and commercialized consumers are not repeatedly burdened to offset subsidy gaps successful different sectors.

Published - October 09, 2025 06:52 p.m. IST

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