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Industry & Economy - Power
States - Karnataka
FKCCI seeks cancellation of power supply cos’ licences

Our Bureau

Bangalore, Aug. 6

Alleging that the load shedding enforced in Karnataka by electricity supply companies (Escoms) was only an indirect and illegal attempt to “tamper with the power tariff,” the Federation of Karnataka Chambers of Commerce and Industry (FKCCI) has appealed to the State power regulator to cancel the distribution licences of all the five Escoms in the state.

In a petition filed before the power regulator – the Karnataka Electricity Regulatory Commission (KERC) - on Wednesday, the FKCCI has appealed to the Commission to levy a penalty of Rs 1 crore on each of the five Escoms, for the alleged violation of several regulations of the power regulator and provisions of the Electricity Act.

The FKCCI has not only demanded immediate withdrawal of load shedding, but has also sought that the KERC should order an investigation into the affairs of the licensees by appointing an Investigating Authority.

The five Escoms have enforced unscheduled load shedding of two hours a day in the urban areas and 10 hours in the rural areas while citing increase in power consumption triggered by prolonged dry spells in some districts. Bangalore has been freed from load shedding.

Power shortage

However, the FKCCI sought to debunk the claims that the State was facing power shortage. If there was power shortage, the Escoms would have approached the KERC seeking permission to impose load shedding like their counter parts in other States instead of unilaterally announcing load shedding rota, the FKCCI argued.

The FKCCI alleged that load shedding enforced by Escoms was a mechanism aimed at realising higher tariff by reducing the quantum of power supply (fixed charges remain the same for consumer though power is not supplied for 24 hours).

In other words, the Escoms themselves are trying to determine tariff under the garb of load shedding instead of allowing the KERC to do that job, it alleged.

In an obvious reference to higher hours of load shedding in rural areas and relieving Bangalore of load shedding, the FKCCI said the load shedding smacks of discrimination for various classes of consumers though all these classes are paying same tariff.

It said the provisions of the Electricity Act, and various regulations of KERC make it mandatory for the distribution companies to provide quality, continual and reliable power supply to the consumers without discrimination.

It said thousands of man hours will be lost leading to job loss and increase in the production cost due to such load shedding.

More Stories on : Power | Karnataka | Industry Associations

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