A consumer association from Sirsi in Uttara Kannada district has objected to the electricity tariff review petition filed by Hubballi Electricity Supply Company Limited (Hescom), saying the company is trying to abuse the process to reopen the fixed tariff order and shift the financial burden of electricity subsidy from the state government to consumers.
The Balakedarara Hitarakshaka Sangha, led by its president GG Hegde Kadekodi, filed an objection with the Karnataka Electricity Regulatory Commission (KERC). The group is of the view that Hescom’s review petition is “not maintainable in law” and an “appeal in disguise”.
In March 2025, KERC approved a new Tariff Order for all Electricity Supply Companies (Escoms) in Karnataka. Hescom has now asked the commission to review this order, arguing that the allocation of free electricity to farmers is insufficient and that the tariff set is too high.
The utility has sought to reduce the unit rate for irrigation pump sets (IP) under LT – 4(a) – electricity tariff category for irrigation pump sets used by low voltage farmers from ₹ 8.30 to ₹ 7.35 and bridge the revenue gap by increasing tariffs for commercial and industrial consumers by ₹ 0.10 to ₹ per unit.
Escom officials said they were facing a subsidy shortfall of ₹4,620 crore as the state government had sanctioned only ₹16,021 crore for 2025-26 against the ₹20,640 crore the commission had identified as required.
In its objection, the association argued that Hescom was trying to re-argue matters already decided in the rate order, which is not legally permissible. He emphasized that a review can only be used to correct any error or consider new evidence, not to reconsider a decision on the merits.
“This is not a review, but an attempt to reopen already settled rate-setting,” the objection reads. “If Hescom disagrees with the tariff order, it should approach the Electricity Appeal Tribunal (APTEL) instead of filing a review before the commission.”
The group also cited several Supreme Court decisions that make it clear that review provisions cannot be used as an appeal.
The association highlighted a recurring problem and pointed out that the state government often did not release the entire subsidy amount in advance as required by Section 65 of the Electricity Act, 2003. As a result, the financial burden of free power to irrigation pumps is shifted to other categories of consumers such as industries and commercial users.
Citing data from the commission, the objection said cross-subsidy payments from these consumers reached ₹5,680 crore in 2023-24. “Instead of seeking payment from the government, Hescom is trying to collect it indirectly from the public,” he said.
The association asked KERC to dismiss the Escoms’ review petition and order them to follow the appeal provisions available under the Electricity Act 2003 if it wants to challenge the tariff regulation and ensure that the government strictly complies with its subsidy obligations. She also requested an in-person hearing before the commission to present her case during an upcoming public hearing on the petition.
Published – 25 Oct 2025 21:56 IST
