Ahead of the State Budget for the financial year 2024 – 2025, the Karnataka Electricity Regulatory Commission (KERC) has written to the State government to consider an increased budgetary allocation for the free supply of power to irrigation pumpsets (of 10 HP and below).
The commission has placed this request to reduce the burden of cross subsidies on industrial and commercial consumers in the State by removing it, which would essentially result in reduced electricity tariff for these consumers.
A letter, written to the Additional Chief Secretary (ACS), Energy Department, explains that traditionally, tariff is fixed based on the paying capacity of consumers and hence, the tariff for IP sets as well as other domestic consumers is usually lower than that for industrial, commercial, and other high-consumption domestic consumers.
