KERC directs Escoms to compensate HT consumers for prolonged power outages -OxBig News Network

The Karnataka Electricity Regulatory Commission (KERC) has directed electricity supply companies (Escoms) to compensate high tension (HT) industrial consumers in the form of reduced demand charges for power outages beyond a specified limit. These regulations will come into effect on April 1, 2026, as the commission has provided a transition period of one year to Escoms to set right the deficiencies. 

At a time when an increasing number of HT consumers are moving towards open access electricity distributors, the KERC in a tariff order which was pronounced on Thursday has brought in many industry and commercial consumer friendly regulations.  

The commission says that unscheduled interruptions should not be more than 20 times and 60 minutes in 2026 – 27, and 15 times and 45 minutes in 2027 – 28 for any HT industrial consumers.  

“In the event of a default beyond the above permissible limits, the affected HT industrial consumer shall be entitled to compensation in the form of reduction in demand charges by ₹10 per kVA of the billing demand for the month during which any one or both of the above indicated default occurs,” the order notes.

The commission has also directed Escoms to appoint a senior officer, not below the rank of a Superintending Engineer at their corporate offices to attend to the issue of high-value customers and to ensure compliance to these regulations.  

Industries welcomed the new tariff order. “Except for the increase in fixed/demand charges, it looks like it is a good order. Many HT consumers are going to open access now and thus, it seems like these moves have been brough in to retain the existing consumers. As of now, most big industries have moved to open access and the impact of these new regulations can be observed by smaller industries,” said M.G. Balakrishna, president, Federation of Karnataka Chambers of Commerce and Industries (FKCCI). 

Cross subsidy increased for IP sets 

The tariff of LT – 4 (a) irrigation pump (IP) sets (less than 10 HP), which is subsidised by the government, is the only category where the tariff has gone up in the recent order. It went up from  ₹5.65 per unit to ₹8.3 per unit in 2025 – 26, ₹8.56 per unit in 2026 – 27, and ₹8.99 per unit in the 2027 – 28 as the commission has levied common cross subsidy (CCS) charges on the category. 

Although no CCS charges were imposed on the category earlier, the commission has now fixed it at 26 paise per unit for the first year, 49 paise per unit in the second year, and 89 paise per unit in the third year, with an aim to reduce the cross-subsidy charges on industrial and commercial consumers. 

“The government put an additional burden of 36 paise per unit on consumers for the payment of pension and gratuity of Escom and KPTCL employees. But the commission has increased the cross-subsidy charges for IP sets and is in turn making the government pay for a significant part of it,” noted an expert in the power sector requesting anonymity.  

Rebate for SRTPV consumers 

Consumers who had installed solar rooftop photovoltaic (SRTPV) systems had said during KERC’s public hearings that while they were made to pay a significant amount towards fixed charges which increase every year, the tariff for the net energy sold by them to the electricity supply companies (Escoms) remained the same for a period of 25 years.  

After examining this issue, the commission said that it will introduce a promotional rebate scheme for LT domestic consumers with a sanctioned load of up to 10 kW who have installed a SRTPV system. Under this Scheme, eligible consumers will receive a rebate of ₹25 per kW on the installed SRTPV capacity, subject to a maximum of 10 KW. 

Advance payment provision 

The KERC directed Escoms to make provisions in their software to accept advance payment of any amount the consumers want to pay against their consumer accounts to help those consumers who are likely to be away from their homes in different countries.

Under the online payment system, advance payments are currently not being accepted. The commission thus noted that any person who is away from home/country should have the facility to make advance payments.