K’taka MSMEs condemn hike in power tariff by KERC

Bengaluru, May 31 (KNN) The Karnataka Electricity Regulatory Commission (KERC) has affected a hike in power tariff for industrial and commercial consumers in the State.

While condemning the move of KERC, Vice President of Peenya Industries Association (PIA) Srinivas Asranna told KNN India “Instead of handholding industries especially Micro Small and Medium Enterprises (MSMEs), the KERC has given another blow to the troubling MSME sector just after the elections. It was not the right time to revise the tariffs in upward direction.”

Requesting the government to reconsider it, he said “Every year there has been an increase in power tariff rates which hampers the growth of MSMEs.”

The tariff for both low tension (LT) and high tension (HT) consumers have been revised with a marginal increase in rates. The LT industries will pay 15 to 20 paise more while the tariff for HT industries has seen a flat 20 paise hike.

The revised rates will be applicable for electricity consumed from April 1, 2019 as the announcement got delayed because of Lok Sabha elections and the model code of conduct. According to the KERC, the revised rates will be applied in next month’s bills.

KERC chairperson Shambhu Dayal Meena said the hike was necessitated due to 16% increase in power purchase cost, 20% increase in operation and management costs, 12% increase in interest and finance charges, 22% increase in depreciation and deficit for 2017-18 fiscal due to truing up of ₹2,192.33 crore.

President of Karnataka Small Scale Industries Association (KASSIA), Basavaraj S. Javali has also condemned this move and said that the higher power tariff rates will create difficulties for MSMEs in future.