A brewing conflict is underway in Mysuru as local industries vehemently challenge the Chamundeshwari Electricity Supply Corporation’s (CESC) proposal to increase electricity tariffs for industrial and commercial consumers. The proposed hike is intended to offset the costs of subsidized power supplied to irrigation pump (IP) sets used in agriculture, a move that has sparked significant concern among businesses.
The Karnataka Electricity Regulatory Commission (KERC) is currently reviewing CESC’s revised tariff proposal. This revision comes after CESC and other state ESCOMs (Electricity Supply Companies) filed a Review Petition with the KERC, seeking amendments to the KERC Tariff Order-2025. Their main contention is a substantial funding gap: the state government budgeted ₹16,021 crore for power subsidies, but the actual requirement is estimated to be ₹20,640 crore, leaving a considerable shortfall.
To bridge this financial gap, ESCOMs have put forward a plan to impose higher tariffs on industrial and commercial users. Specifically, CESC and other providers are looking to increase energy charges for LT-5 (industrial) consumers from ₹4.50 to ₹5.20 per unit. For HT-2A (industrial) consumers, the rate would climb from ₹6.60 to ₹6.70 per unit. Additionally, fixed charges are also slated to rise by ₹15 to ₹20 per horsepower (HP), depending on the specific category.
Industries Lodge Strong Objections
The Mysore Industries Association (MIA) has expressed strong disapproval of this proposal, arguing that industries are being unfairly made to shoulder the financial burden of a shortfall that stems from government policy. P. Vishwanath, MIA president, and Suresh Kumar Jain, secretary, formally registered their objections with the KERC, labeling the move as an attempt to recover the government’s subsidy liabilities from the industrial sector.
MIA members highlighted that the State government has a history of delaying timely subsidy payments to ESCOMs, a practice that consistently shifts the financial strain onto industries. The Association further asserted that the ESCOMs’ review petition is legally unsound, as it attempts to re-engineer tariff structures and subsidy allocations – issues that should properly be addressed through an appeal to the Appellate Tribunal for Electricity (APTEL).
Mr. Jain emphasized that electricity costs for industries in the Mysuru region are already higher compared to other industrial hubs across South India. Any further increase, he warned, would severely impact cost competitiveness, particularly for micro, small, and medium enterprises (MSMEs), potentially rendering them economically unviable.
Stakeholders also fear that escalated tariffs could deter new investments and further destabilize existing businesses already struggling with challenging market conditions. The MIA has urged the KERC to reject the petition outright and instead develop a clear, phased strategy for gradually reducing cross-subsidies. This, they argue, would prevent industrial and commercial consumers from being repeatedly burdened to compensate for subsidy shortfalls in other sectors.