A consumer association from Sirsi in Uttara Kannada district has objected to the power tariff review petition filed by the Hubballi Electricity Supply Company Limited (Hescom), saying the company is trying to misuse the process to reopen a settled tariff order and shift the financial burden of electricity subsidies from the State government onto consumers.
The Balakedarara Hitarakshaka Sangha, led by its president G.G. Hegde Kadekodi, filed the objection before the Karnataka Electricity Regulatory Commission (KERC). The group has opined that Hescom’s review petition is ‘not maintainable in law’ and ‘an appeal in disguise’.
In March 2025, the KERC approved a new tariff order for all electricity supply companies (Escoms) in Karnataka. The Hescom has now asked the commission to revise that order, arguing that the allocation for free electricity to farmers was insufficient and that the tariff determined was too high.
The utility has sought to reduce the per-unit rate for irrigation pump (IP) sets under LT – 4(a) – electricity tariff category for irrigation pump sets used by farmers under low-tension supply from ₹8.30 to ₹7.35, and make up the revenue gap by increasing tariffs for commercial and industrial consumers by ₹0.10 to ₹1 per unit.
The Escom officials said it faces a subsidy shortfall of ₹4,620 crore, because the State government sanctioned only ₹16,021 crore for 2025–26, against the ₹20,640 crore that the commission had determined was required.
In its objection, the association argued that the Hescom is trying to re-argue issues already decided in the tariff order, which is legally not permissible. A review, it pointed out, can only be used to correct any error or to consider new evidence, not to revisit a decision on merits.
“This is not a review, but an attempt to reopen an already settled tariff determination,” the objection stated. “If the Hescom disagrees with the tariff order, it should approach the Appellate Tribunal for Electricity (APTEL) instead of filing a review before the commission.”
The group also cited several Supreme Court rulings which make clear that provisions of review cannot be used as an appeal.
The association highlighted a recurring issue, pointing out that the State government has often failed to release the full subsidy amount in advance, as required under Section 65 of the Electricity Act, 2003. As a result, the financial burden of free power to irrigation pump sets gets passed on to other consumer categories such as industries and commercial users.
Citing figures from the commission, the objection noted that cross-subsidy payments from these consumers amounted to ₹5,680 crore in 2023–24. “Instead of demanding payment from the government, the Hescom is trying to collect it indirectly from the public,” it said.
The association has requested the KERC to dismiss Escoms review petition, direct them to follow pursue the appeal provisions available under the Electricity Act, 2003, if it wishes to challenge the tariff order and ensure that the government strictly complies with its subsidy obligations. It has also sought a personal hearing before the commission to present its case during the upcoming public hearing on the petition.
Published – October 25, 2025 09:56 pm IST
