FKCCI objects to Bescom's annual performance review

The Karnataka Electricity Regulatory Commission (KERC) has started hearing objections against the Annual Performance Review (APR) filed by Bescom.

The Federation of Karnataka Chambers of Commerce and Industry (FKCCI) has raised concerns against the APR filed by Bescom.

In the APR and the truing-up petition, Bescom has pointed out the deficit in revenue and sought some relief from the KERC, indirectly seeking an increase in tariff.

However, referring to the petition, FKCCI pointed out that Bescom had not filed the audited accounts and had failed to conduct a comprehensive cost-of-service study, which is essential to determine fair and rational tariffs.

“FKCCI expressed serious concerns regarding regulatory non-compliance, lack of transparency, and issues adversely affecting consumers, particularly the MSME sector, which forms the backbone of Karnataka’s industrial ecosystem,” the objections filed by the FKCCI said. 

FKCCI also requested that the KERC direct Bescom to maintain the existing tariff structure until regulatory compliance is ensured.

“Frame transparent regulations governing additional surcharge, create a separate tariff category for MSMEs and implement solar hours tariff to promote affordability and renewable energy use,” the FKCCI said.

However, responding to the FKCCI, Bescom, in an affidavit before the KERC, has said that the APR was submitted based on the statutory audited accounts, which have been finalised in accordance with the Companies Act, 2013 and applicable accounting standards.

It also refuted claims that the cost-of-services was not studied scientifically.

“The voltage-wise cost of supply has been worked out by Bescom in the prescribed D-23 format, strictly in accordance with the methodology approved by the KERC during Multi-Year tariff filing,” Bescom said.

Bescom, responding to the objections raised by FKCCI, said that the KERC should consider the true-up petition and APR submitted by the power utility.