Industries, residents in Bengaluru call steep power tariff hike untimely burden on consumers

Bengaluru: The newly proposed tariff hike sent shock waves across industries and apartment resident welfare associations, with these bodies opposing it and warning that it will significantly increase electricity expenses and be a huge burden on end consumers and residents.The Karnataka Electricity Regulatory Commission (KERC) had recently paved way for hiking power tariff ranging from a minimum of 10 paise to a maximum of 95 paise per unit for industrial and commercial consumers. To compensate for the revenue gap, KERC approved upward revisions in energy and demand charges for certain user categories, covering shops and establishments, manufacturing units, MSMEs and IT tech parks. RWAs also said higher tariffs will ultimately burden households through rising living and maintenance costs.
Prabhu Patil, president of Rohan Vasantha Apartments in Marathahalli, said: "The hike is not as small as one might think, and the timing is bad, coming in summer. Usually, our bill is around Rs 3.3 to Rs 3.7 lakh for 13 meters across nine blocks with 579 flats, and it goes up even more in summer due to AC usage — easily touching over Rs 4 lakh. We started exploring solar options in the last few months."Satish Mallya, president, Bangalore Apartments Federation and a member of KERC, said: "Increasing tariffs now cannot be the only solution. If power charges go up, apartment maintenance costs will also rise, and residents will ultimately bear the burden. Instead of repeatedly increasing tariffs due to inefficiencies, authorities should focus on improving the system and promoting rooftop solar power in Bengaluru, which can reduce the cost of power purchase in the long run."InsetUntimely, say industriesIndustries said the move will strain MSMEs already grappling with rising input and labour costs.Jacob Crasta, an industry owner at Peenya II Stage for the last 48 years, said: "Power-intensive industries like ours, especially those with high heat loads, are facing the brunt of rising electricity costs. Solar power costs around Rs 2.3 per unit, yet Bescom charges Rs 7.3 per unit, highlighting inefficiencies in power distribution. This directly impacts production — every month we spend around Rs 2.5 lakh testing our simulation products and sensors, and costs can rise up to 20%. Solar is not economically viable for our requirement of 265 kVA, forcing us to pass these expenses on to end consumers."Representing over 7,000 units, the Peenya Industries Association said energy charges for industrial consumers jumped from around Rs 4.5 to as high as Rs 7.79 per unit, while fixed charges also rose. The association said it is highly disappointing and untimely. It urged the govt to either roll back or provide relief measures for small industries.Uma Reddy, president, FKCCI, said: "Industries are already under pressure from rising freight and raw material costs, and any increase in power tariffs at this time will be a major blow, especially for MSMEs. Power is essential for manufacturing, and higher tariffs will push up product prices, reducing global competitiveness. Small and micro enterprises often work on fixed annual contracts, so they cannot pass on these costs, putting their survival — and the jobs they provide — at risk."