Escoms want changes in 2025 tariff order across Karnataka

Bengaluru: Bescom and other electricity supply companies (escoms) in the state have filed an amended review petition with the Karnataka Electricity Regulatory Commission (KERC) seeking a revision of the tariff order of March 2025. 

This is the third petition the escoms have filed seeking a decrease in tariff rates for power supplied to agricultural pumpsets and an increase in tariff rates for power supplied to industries and commercial establishments.

The petition requests to decrease the power supply charges for agricultural pumpsets by 95 paisa per unit and to increase the electricity charges for industrial and commercial establishments between ten paisa and Re 1 per unit to make up for the shortfall in revenue of the escoms.

In the tariff order issued by the KERC in March 2025, the tariff for industrial consumers was reduced.

Federation of Karnataka Chambers of Commerce and Industry (FKCCI) and many other organisations had submitted objections to the proposal, stating that the tariff order cannot be changed unless it is outrightly
erroneous.

Now, the amended petition from escoms quotes various cases reported at the Supreme Court and High Court and various sections of the Electricity Act, 2003, to argue that the KERC has the power to change the order issued earlier. 

“Section 61(g) of the Electricity Act, 2003 requires the State Electricity Regulatory Commissions (SERCs) to progressively reduce cross-subsidies, thereby acknowledging that the subsidies are permissible and necessary. The Act enables this honourable commission to charge agricultural consumers concessional tariffs, subsidised by higher tariffs from industrial and commercial users,” the petition said.