Manufacturing and service sectors in Karnataka will face serious impact of power tariff hikes: FKCCI 

Industry officials said many companies will be forced to shut down as about 16.3% of electricity is consumed by HT consumers whose business expenses will increase with higher electricity rates. 
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In the backdrop of the Electricity Supply Companies (Escoms) of the State submitting their tariff revision proposals to the Karnataka Electricity Regulatory Commission (KERC), Federation of Karnataka Chambers of Commerce and Industry (FKCCI) has claimed that the proposed tariffs will have a serious impact on manufacturing and service sectors.

In a press meet on January 14, Saturday, FKCCI noted that Escoms have filed for an increase in demand drafts/ fixed charges, withdrawal of special incentive schemes, levying of grid support charges for open access consumers and withdrawal of solar water concession provided to domestic users.

“We would like to inform that there will be a severe impact on 15,147 (HT) consumers and around 5,35,220 small scale industrial units in our State. Small industries account for 3.2% of total electricity usage in the state and employ approximately 40 lakh persons,” said B. V. Gopal Reddy, President, FKCCI.

He added that many companies will be forced to shut down as about 16.3% of electricity is consumed by HT consumers whose business expenses will increase with the electricity rates. He also said that the burden of paying the retirement benefits of the staff of electricity corporation is being transferred on to the consumers according to a recently issued order.

“Thus, consumers will have to pay ₹3,353 crore in three annual installments. Government has also issued order regarding liability towards Tannirbhavi of ₹1,657 crore to be recovered from consumers through tariff hike.