After writing to the State government about reducing the burden of cross subsidy on Commercial and Industrial consumers, the Karnataka Electricity Regulatory Commission (KERC) in the tariff order for Financial Year 2024-25 has reduced the extent of cross subsidy to these consumers by reducing energy charges.
The HT – 2 (a) industrial consumers were cross subsidising to the extent of 12.39% as per the previous year’s tariff order, whereas HT – 2(b) commercial consumers were cross subsidising to the extent of 53.04%. The commission has now reduced it to 6.08% and 36.28% while also reducing the energy charges by 50 paise per unit and 125 paise per unit, respectively.
“It has been a fact that over the years the industrial and commercial consumers are bearing the burden of cross subsidies to meet the subsidised cost of power to irrigation pump sets in the State. This is essentially resulting in payment of cross subsidies to the government by these industrial and commercial consumers,” the tariff order says.
