Bengaluru: Rejoicing over the Centre’s GST revision, industries and commercial entities across Karnataka are bracing for a major power shock. Electricity supply companies (Escoms) have petitioned the Karnataka Electricity Regulatory Commission (KERC), seeking a tariff readjustment that would reduce charges on irrigation pump (IP) sets while transferring the subsidy burden to industrial and commercial consumers.In a detailed public notice, Escoms justified their demand and invited objections from citizens. Within its limits, Bescom has proposed reducing the tariff for LT-4(a) IP sets (below 10 HP) by 95 paise per unit. To offset the shortfall, the power utility proposed increasing tariffs for industrial and commercial consumers, ranging from 10 paise to Rs 1 per unit.Bescom, in its petition, stated that KERC’s tariff order of March 2025, which fixed the IP set tariff at Rs 8.3 per unit, did not factor in the budget allocation for subsidies to this category. The higher tariff, it claimed, forced the energy department to bear the subsidy expenses far beyond its sanctioned allocation. With a scale down on the tariffs, the burden on the department would ease, with the relief directly benefiting farmers. TOI had reported on the Escoms move in its edition dated August 13, 2025.However, the move comes at a staggering cost, as Bescom estimates a revenue shortfall of Rs 2,362.5 crore in the financial year 2025-26. Even though the govt has agreed to bear this shortfall, Bescom has proposed to raise additional Rs 1214.1 crore by revising the tariff for industrial and commercial consumers. If approved, commercial consumers under LT-3 would pay fixed charges of Rs 235 per kW and energy charges of Rs 7.1 per unit, while industries in HT-2 categories could see tariffs rise to Rs 6.7 per unit and Rs 6.9 per unit for commercial consumers. Business groups fear these increases will raise operating costs, hurt competitiveness, and shrink investment at a time when many sectors are already under pressure.Defending the cross-subsidy model, Bescom maintained that agriculture—being the backbone of the economy—cannot withstand steep tariffs without state support. The petition is now open for public objections for 30 days.The fresh petition by Escoms has evoked a bitter response from energy consultants. “The Escoms, under the pretext of reviewing the tariff, are actually seeking restructuring of the original tariff, and KERC must dismiss the petition,” argued an independent energy consultant from Bengaluru.
