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Karnataka industrial consumers seek Power regulator's help

Small-scale industrial units have requested the Karnataka Electricity Regulatory Commission (KERC) to direct electricity supply companies (Escoms) not to make ‘time-of-the-day’ (ToD) tariff compulsory for them. ToD tariff is aimed at encouraging industrial consumers to use maximum power during the non-peak night hours. MR Sreenivasamurthy, Chairman of KERC, received objections from consumers at the public hearing in Mangalore on Wednesday.

Participating in the KERC public hearing on power tariff revision for 2014-15, BA Nazeer, representing Kanara Chamber of Commerce and Industry (KCCI), said each industry has its problems of procuring raw materials, mobilising manpower and scheduling working hours. The use of electricity during peak hours attracts additional levy under the ToD tariff.

The additional levy should not be imposed for using power during the peak hour. The consumers should be incentivised with reduction in tariff for using the power during the non-peak hour of 10 pm to 6 am, he said.

Jayaraj Pai, representing Karnataka Small Scale Industries Association, said that if ToD tariff is made compulsory for industrial units, then it will affect the small units adversely. He said that though the industrial consumers are contributing a significant share to the revenue of Mangalore Electricity Supply Company (Mescom), the unscheduled power load-shedding and frequent interruptions are affecting them.

SS Kamath, former president of KCCI, said that Mescom has to conduct the business on commercial principles. If the State Government exempts certain categories of consumers from the payment of electricity consumed, it is the bounden duty of the Government to reimburse the distributing company. Such perennial cross subsidising will destroy the small scale industries, he said.

In Kerala, which is 20 km away from Mangalore, power is supplied to small industries at rates much lower than Karnataka. As a result of this, many small-scale units in Dakshina Kannada have closed down on account of their inability to compete in pricing their products compared to the price of products of Kerala, he said. Mescom had submitted a proposal to KERC to increase the power tariff by 66 paise a unit.

Source-On Request