Thu Oct 31 01:30:00 UTC 2024: Updated – October 31, 2024 10:38 am IST – BengaluruCross subsidy surcharge is levied on the category of consumers who are allowed to also procure power from open-access sources. | Photo Credit: file photo
Earlier this January, the Karnataka Electricity Regulatory Commission (KERC) wrote to the State government asking it to reduce the burden of cross subsidy on industry and commercial consumers.However, on October 15, the commission passed a correction order which increased the cross subsidy surcharge (CSS) by three times on industrial (HT 2(a)) consumers, when compared to the original tariff order.
P. Ravikumar, chairperson of KERC, had written to the government that the cross subsidy levied on industrial and commercial consumers (to subsidise for IP sets and Gruha Jyothi scheme) should be completely removed to reduce their electricity tariffs. CSS is levied on the category of consumers who are allowed to also procure power from open-access sources.
In the tariff order that came out in February for FY 2024 – 25, the CSS was reduced when compared to the previous year. The CSS for industrial consumers was fixed at 55 paise per unit.Later, the five electricity supply companies (escoms) in the State filed a review petition with the commission saying that it had not considered the formula laid down by the National Electricity Policy, while calculating the CSS and proposed an increase. The new order fixed the CSS for industries at 192 paise per unit.
“The escoms filed a review petition saying that we (KERC) made a mistake. Upon review we found that we had indeed made a mistake while computing the CSS. We corrected it according to the National Electricity Policy and other regulations,” Mr. Ravikumar told The Hindu.
He added “even after the revision, the CSS is lesser than how much it was last year,” implying that the KERC was working towards reducing the burden on industrial consumers.The difference in CSS amount for the period between April and September will be collected in six monthly installments from the consumers to whom the order is applicable. Other than industrial consumers, the CSS has also been increased for other HT consumers including government and private hospitals and residential apartments. It has also been increased from 209 paise to 223 paise per unit for LT commercial consumers, 0 to 44 paise per unit for IP set (above 10 HP) consumers, and 71 paise to 137 paise per unit for LT industrial consumers.
With these revisions, even the small-scale industries would now have to face the burden of paying the difference amount in six months. Industry bodies said that with escoms all set to file their tariff applications for the next FY in November, the charges can be adjusted then instead of burdening industrial and commercial consumers now.
The industries are also urging the government to calculate the CSS based on the actual power purchase cost instead of the average power purchase cost to help the sector. “The power consumption share of HT consumers is just about 14% of the total quantum and yet, we are burdened the most with these charges. If they continue these trends, then more consumers will opt for open access and the burden will further increase on the HT consumers who remain in the grid. This will create an unwelcome environment for industries in the State. The government should take appropriate measures in this regard,” said M.G. Balakrishna, president, Federation of Karnataka Chambers of Commerce and Industry (FKCCI).
Published – October 31, 2024 07:00 am IST
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