The Federation of Karnataka Chambers of Commerce and Industries (FKCCI) has requested the Karnataka Electricity Regulatory Commission (KERC) to reject the proposal by ESCOMs to levy an additional surcharge on Open Access consumers, saying the proposal has no legal basis because the mandatory regulations for governing such a surcharge have not yet been framed.
The Open Access allows electricity consumers to buy power from any source they choose, instead of only from their local electricity supply companies like Bescom.
In an affidavit filed on Tuesday, FKCCI’s secretary general Lokaraj M. said the Karnataka High Court, in December 2024, directed the KERC to frame specific regulations for determining additional surcharge within six months. However, even after nearly a year, no regulations have been notified.
The FKCCI said that without these rules, any surcharge levy ‘lacks legal sanctity’ and cannot be imposed on consumers. The FKCCI, which represents more than 3,500 members and over 150 affiliated associations, said MSMEs across Karnataka would be directly affected if ESCOMs’ petition were approved. A major concern highlighted by the FKCCI is that Bescom changed its surcharge amount midway.
The original demand is at ₹1.65 per unit, while revised demand is ₹0.58 per unit.
FKCCI president Uma Reddy said that this revised levy, without transparency or supporting documents, shows the proposal is ‘arbitrary, unclear and unreliable’. She argued that surcharge determination must follow a fixed regulatory method, not shifting numbers.
The FKCCI also pointed out that several High Tension Open Access consumers have already challenged ESCOMs’ surcharge calculations in the High Court. The challenge is not against the law permitting surcharge, but against how ESCOMs compute it. The chamber said that deciding the surcharge now, while the matter is sub-judice, could create confusion and lead to conflicting orders, and therefore the KERC should wait for the High Court’s ruling.
Referring to the National Tariff Policy, the FKCCI said distribution companies can levy an additional surcharge only if they clearly prove that Open Access consumers have caused stranded capacity power contracted by ESCOMs but lying unused.
The policy also warns that surcharge should not be used to discourage Open Access. The FKCCI said Bescom has failed to show any such stranded capacity, and the fluctuating surcharge amount itself shows the calculation is not based on clear evidence.
The FKCCI cited a key judgment of the Appellate Tribunal for Electricity (APTEL) which says surcharge must be backed by clear and verifiable data, the ESCOMs must provide voltage-wise stranded capacity and that stakeholders must be able to verify the calculations.
According to the FKCCI, the Bescom has not shared any such data or its computation method, making the claim incomplete and impossible to verify.
The FKCCI asked the KERC to reject the Bescom’s proposal for additional surcharge, order the Bescom to disclose voltage-wise stranded capacity data, ensure that any surcharge decision complies with the High Court’s directions, Tariff Policy, and APTEL judgment and issue any further orders necessary to protect consumer interest.
Published – December 03, 2025 10:34 pm IST
