<p>Bengaluru: “If the commission’s tariff order is implemented for LT-4(a) category (agricultural pump sets), ESCOMs cannot meet this shortfall in revenue, as the same is not provided in the budget. Bescom can neither recover the shortfall from the government nor from the consumers. Therefore, the ESCOMs filed a petition for modification,” the petition had noted.</p>.<p>To make up for this shortfall, the ESCOMs had suggested that the KERC bring down the tariff for agricultural pump sets and increase the tariff for commercial and industrial establishments.</p>.<p>Though the industry bodies had raised objections against the review petition, the KERC, on Tuesday, approved the revision, stating that it was important to protect the agricultural economy.</p>.<p>They noted that despite the allocation of subsidy amount to the tune of Rs 16,021 crore by the state government to meet the cost of free power supply to LT-4a consumers, the ESCOMs will not be able to recover the full cost of electricity that would be supplied to the LT-4a consumers.</p>.Escoms want changes in 2025 tariff order across Karnataka.<p>“The ESCOMs will have no option but ask the LT-4a consumers pay towards the balance amount. Under such circumstances, LT-4a consumers will be put to undue hardships. In order to safeguard the interest of consumers of the LT-4a category and at the same time to ensure that the ESCOMs are able to recover cost of electricity in a reasonable manner, this commission is of the view that the prayer of the review petitioners could be considered,” the order said.</p>.<p>Shock for industrialists</p>.<p>The industrialists said that the increase in tariffs will be a huge burden for them. The impact is especially high given the geopolitical situations and the tariff imposition by the US, the industrialists said.</p>.<p>“The situation is already bad, there is a war going on and the supply chain is likely to be disrupted. Recently, the US has also imposed tariff in exports and this has also impacted business. The government had promised to protect the industrialists. But this order comes as a big shock to us,” said Uma Reddy, President, Federation of Karnataka Chambers of Commerce and Industry (FKCCI). The FKCCI is also exploring the possibility of challenging the order.</p>.<p>Amidst concerns that the revision in power tariff could increase the operational costs, the industrialists are also worried if the order could be retrospective.</p>.<p>The order passed by the KERC said that the tariff revision was for FY 2025-26. While it does not directly say that the revision will apply retrospectively, sources in Bescom said that the order indirectly means that it can be applied retrospectively and they will soon hold a discussion to chalk out the finer details.</p>.<p>Industrialists say that this would impact their business adversely and result in heavy losses.</p>
<p>Bengaluru: “If the commission’s tariff order is implemented for LT-4(a) category (agricultural pump sets), ESCOMs cannot meet this shortfall in revenue, as the same is not provided in the budget. Bescom can neither recover the shortfall from the government nor from the consumers. Therefore, the ESCOMs filed a petition for modification,” the petition had noted.</p>.<p>To make up for this shortfall, the ESCOMs had suggested that the KERC bring down the tariff for agricultural pump sets and increase the tariff for commercial and industrial establishments.</p>.<p>Though the industry bodies had raised objections against the review petition, the KERC, on Tuesday, approved the revision, stating that it was important to protect the agricultural economy.</p>.<p>They noted that despite the allocation of subsidy amount to the tune of Rs 16,021 crore by the state government to meet the cost of free power supply to LT-4a consumers, the ESCOMs will not be able to recover the full cost of electricity that would be supplied to the LT-4a consumers.</p>.Escoms want changes in 2025 tariff order across Karnataka.<p>“The ESCOMs will have no option but ask the LT-4a consumers pay towards the balance amount. Under such circumstances, LT-4a consumers will be put to undue hardships. In order to safeguard the interest of consumers of the LT-4a category and at the same time to ensure that the ESCOMs are able to recover cost of electricity in a reasonable manner, this commission is of the view that the prayer of the review petitioners could be considered,” the order said.</p>.<p>Shock for industrialists</p>.<p>The industrialists said that the increase in tariffs will be a huge burden for them. The impact is especially high given the geopolitical situations and the tariff imposition by the US, the industrialists said.</p>.<p>“The situation is already bad, there is a war going on and the supply chain is likely to be disrupted. Recently, the US has also imposed tariff in exports and this has also impacted business. The government had promised to protect the industrialists. But this order comes as a big shock to us,” said Uma Reddy, President, Federation of Karnataka Chambers of Commerce and Industry (FKCCI). The FKCCI is also exploring the possibility of challenging the order.</p>.<p>Amidst concerns that the revision in power tariff could increase the operational costs, the industrialists are also worried if the order could be retrospective.</p>.<p>The order passed by the KERC said that the tariff revision was for FY 2025-26. While it does not directly say that the revision will apply retrospectively, sources in Bescom said that the order indirectly means that it can be applied retrospectively and they will soon hold a discussion to chalk out the finer details.</p>.<p>Industrialists say that this would impact their business adversely and result in heavy losses.</p>
