Bescom petitions KERC against TATA’s bid for parallel power distribution licence

Bangalore Electricity Supply Company Limited (BESCOM) has filed a petition with the Karnataka Electricity Regulatory Commission (KERC) against Tata Power Company Limited’s (TPCL) application with KERC seeking a parallel electricity distribution license in 19 districts.

In a copy of the petition available to The Hindu, Bescom raised objections citing non-compliance with legislation, lack of network, consumer protection risks and competition concerns, among others.

A senior Bescom official confirmed the petition and said, “We don’t want TPCL to use our already developed infrastructure and supply electricity to brownfields (developed industrial and urban areas) and greenfields (outlying and newly developing areas). According to the Electricity Act, 2003, they have to have their own infrastructure and it is not possible for them to build it in TPCL’s permit application within 30 days of getting the license.”

The petition said that TPCL wanted to enter profitable markets without shouldering all the liabilities of a distribution licensee and instead of building its own infrastructure, it relied on Bescom’s infrastructure. The utility argues that if the license is approved, it violates the letter and spirit of the Electricity Act 2003.

Bescom said TPCL did not fulfill the mandatory requirements for a parallel licence.

The petition reads: “TPCL has to prove that it has sufficient power reserves and network to meet its supply obligation under the law. TPCL’s application is largely relying and dependent on ESCOMS network to supply electricity as a distribution licensee through open access. In case a new brownfield consumer requires connection, TPCL cannot get BESCOM to extend its network for three years for additional supply of greenfield electricity, even in the open market. Areas are not TPCL able to supply electricity to the new premises of the consumer within 30 days, as it is practically impossible to build a distribution network from the end point of the licensee’s substation to the location of the new premises of the consumer

Bescom further said that TPCL has “picked” its consumers by targeting only industrial and commercial consumers in profitable corridors while leaving low-paying consumers who demand subsidies. This violates the national tariff policy principle against cherry-picking, the energy company said.

Section 86(b) empowers KERC to regulate the purchase and procurement of electricity. However, TPCL’s plan to rely heavily on short-term market purchases undermines this regulatory function and prevents the Commission from protecting the interests of consumers. Thus, TPCL can raise electricity prices as and when it wants, it argued.

Published – 23 Jun 2026 23:30 IST