Karnataka power utilities seek tariff revision as industry body opposes hike
Bengaluru: Karnataka’s electricity supply companies have approached the state regulator to address a cumulative revenue gap of nearly ₹4,900 crore, triggering opposition from industry groups who warned that any increase in power tariffs would strain manufacturing and commercial operations.
The Federation of Karnataka Chambers of Commerce and Industry (FKCCI) said higher electricity costs would significantly affect factories and industrial units, as the five electricity supply companies (ESCOMs) sought regulatory approval to true up their accounts for 2024-25 and highlighted a sharp divergence between approved costs and actual expenditure, as reported by The Hindu.
In annual performance review submissions to the Karnataka Electricity Regulatory Commission (KERC), Bengaluru Electricity Supply Company (Bescom) recorded the highest deficit among utilities, with a revenue gap of ₹2,802.82 crore. The utilities cited increasing power purchase costs, increased finance charges, growing operation and maintenance expenses, and lower-than-expected revenue realization as major causes of the shortfall. They also claimed that a rate revision was required to ensure financial survival.
Bescom’s petition, however, did not specify the scale of any proposed tariff increase, seeking only approval for the truing-up of its financial year 2025 accounts based on audited figures and leaving the determination of any hike to the Commission.
According to its filing, Bescom’s aggregate revenue requirement for FY 2025 stood at ₹34,708.97 crore, compared with ₹31,905.88 crore in revenue from power sales. The utility reported an average cost of supply of ₹9.35 per unit, while average tariff realisation was ₹8.59 per unit against the approved ₹9.54. It also flagged higher power purchase and financing costs and a decline in other income, while noting savings from reduced distribution losses.
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Vijay unable to prove majority, not invited for CM oath ceremony: Sources
Chennai: Actor-politician Vijay has reportedly not been invited to take oath as Chief Minister of Tamil Nadu after failing to demonstrate support from the required number of MLAs, sources in Raj Bhavan said.
According to media reports that quoted sources in the office of R.N. Ravi Arlekar, Vijay could not prove the backing of 118 legislators, the majority mark in the 234-member Tamil Nadu Assembly.
Despite last-minute efforts to secure support from the Viduthalai Chiruthaigal Katchi (VCK), Amma Makkal Munnetra Kazagam (AMMK), and an IUML legislator, Vijay reportedly managed support from only 116 MLAs, falling short by two members.
Sources said Vijay failed to submit letters of support from the VCK and the Indian Union Muslim League (IUML).
Later, the IUML issued a statement clarifying that it was not part of the TVK-led alliance.
Meanwhile, AMMK leader T.T.V. Dhinakaran is also said to have informed the Governor that his party would support the All India Anna Dravida Munnetra Kazhagam (AIADMK) instead.
Earlier in the evening, Vijay had met Governor Arlekar and staked claim to form the government, stating that he enjoyed the support of 118 MLAs.
