Bengaluru: A proposed revision in tariffs sought by electricity supply companies (Escoms) for commercial and industrial consumers could soon have a cascading impact on citizens. Karnataka Electricity Regulatory Commission (KERC) Wednesday reserved its orders on a review petition filed by Escoms.The Escoms cited a revenue shortfall of Rs 4,620 crore, primarily arising from subsidies extended to irrigation pump (IP) sets. While the state finance department has agreed to release Rs 2,362 crore, the utilities plan to bridge the remaining gap by mobilising Rs 1,254 crore through tariff hikes on commercial and industrial consumers and Rs 1,107 crore from miscellaneous sources.If approved, the tariff revision is expected to directly impact industries, traders, small businesses and commercial establishments — a move that could indirectly affect consumers through higher prices of goods and services in the coming months. During the hearing, Escoms argued that cross-subsidisation — where industrial and commercial users pay higher tariffs to subsidise certain consumer categories such as farmers — is an established feature of the power sector. They maintained that revising tariffs is necessary to ensure financial stability of utilities and uninterrupted power supply.Industry bodies, however, opposed the move. The Federation of Karnataka Chambers of Commerce & Industry (FKCCI) and MSME Council of Mysuru argued that the burden should be borne entirely by the govt rather than passing it on to consumers. KERC chairperson P Ravi Kumar heard arguments from all sides and reserved orders, with a decision expected within a month. The outcome will determine whether industries — and eventually consumers — face higher electricity-linked costs in the coming financial year
