Power shock leaves industries reeling

With the power tariff revision kicking in, industries have seen a steep hike in the electricity bill and many of them complain that it has gone up by at least 30 per cent.

The drastic increase has left industrialists worried, with many fearing that smaller industries may in fact close down unable to bear the burden.

In addition to the increase in per-unit charges by an average of 70 paise, the recent revision by the Karnataka Electricity Regulatory Commission (KERC) also raised the fixed charges which are applicable based on the load consumed.

Industrialists said that such a steep hike is against the rules laid out by the Central Electricity Regulatory Commission (CERC).

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“The fixed charges have gone up by nearly 32 per cent while the CERC stipulates that it should not be more than 20%. This is unfair and since the industries are power-intensive units, the hike will increase the production costs drastically,” said Murali A, general secretary of the Bidadi Industries Association.

Industrialists also pointed out that the KERC had failed to consider their injections during the tariff revision.

“We had submitted numerous representations to the previous government to defer the tariff revision. Every association had raised objections during the KERC hearing. But none of it was considered,” said Shivakumar R, senior vice president, Peenya Industries Associations.

Along with the increase in tariff, the electricity bill for June also included arrears based on the consumption in May and June. This has added to the burden, industrialists said.

“It is against the principles of natural justice. The tariff hike should never be retrospective. The increase in various components combined with the arrears has resulted in the drastic increase, which many industries cannot bear,” said Suresh N Sagar, honorary secretary of the polymer manufacturers association and a member of the Machohalli Industrialists Association.

The industries that have suffered extensively during Covid-19 are not in a position to handle such a drastic hike and this could only lead to many of them shutting shop, Shivakumar added.

“The government should handhold the industries which are now recovering from pandemic-induced losses. Instead, it has approved a revision in tariff, which is disheartening. Not all industries can bear the financial burden amid the loss of business and this will definitely force many of them to shut shop. Peenya Industrial area alone provides employment to close to 12 lakh people and if industries start closing down, the unemployment rate will also go up,” Shivakumar said.

Industrialists are unequivocal that there should be no power tariff revision for at least two years to help them recover from the pandemic.

As a last resort, many associations have written to the KERC and the state government demanding that the power tariff be cut.

“If they do not respond, we will have to shut down the industries and stage a protest. We have no other way,” Sagar said.