Consumers, industrialists say no to revision of electricity charges

Mysuru: Power consumers across domestic and industrial sectors have unanimously opposed the proposed electricity tariff hike by the Chamundeshwari Electricity Supply Corporation (CESC).

CESC has filed a petition before the Karnataka Electricity Regulatory Commission (KERC), seeking an increase of 68 paise a unit in the mandatory charges for all categories of electricity consumers. This includes an increase of 30 paise in the basic charge and 38 paise in the unit charge, adding up to 68 paise a unit.

At a public hearing held by KERC at the Zilla Panchayat (ZP) Hall this morning, stakeholders, including industrialists and MSME representatives, strongly urged the Commission to reject CESC’s proposal, citing revenue deficits.

The hearing, chaired by KERC Chairman P. Ravikumar and Members H.K. Jagadeesh and Jawaid Akhtar, saw participation from the Mysore Chamber of Commerce and Industry (MCCI), Mysore Industries Association (MIA), KIADB Industrial Area Manufacturers’ Association (KIAMA), Hebbal Industrial Estate Manufacturers Association (HIEMA) and Karnataka Small Scale Industries Association (KASSIA),  among others.

The CESC has sought a mandatory fee of Rs. 25 an HP and an increase of 10 paise a unit in charges for LT1 domestic consumers for the year 2025-26. For LT5 industrial consumers, the mandatory fee will be Rs. 40 an HP, and the electricity usage charge will increase by 10 paise a unit for the same period.  

Similarly, for HT2a category industrial consumers, the mandatory fee will be Rs. 75 an HP, and the usage charge will increase by 15 paise a unit. 

K. Ravindra Prabhu of KIAMA criticised CESC for failing to reduce operational costs and plug revenue leaks. He highlighted that CESC could generate significant revenue by charging telecom and cable operators for using electricity poles, citing that only Rs. 71 lakh was collected last year despite the potential for thousands of crores.

MIA General Secretary Suresh Kumar Jain warned that the tariff hike would negatively impact industrial growth, particularly affecting MSMEs already struggling with market competition and high taxes.

He noted that while domestic consumers under the Gruha Jyothi scheme (using less than 200 units monthly) would be shielded, the Government would face higher subsidy burdens.

“CESC proposal comes as a shock to industrial consumers who are already reeling under stiff competition in the market and also paying GST and other forms of taxes. There are over 5,60,000 MSMEs in Karnataka and over 45 lakh employees work there. All of them will be hit hard with the tariff hike,” he said. 

Every year, Electricity Supply Companies approach the KERC for a revision of tariff. Later, the KERC sends a proposal to the State Government with its tariff hike recommendations.