New Delhi: The Karnataka Chamber of Commerce and Industries (KCC&I) has called for a Karnataka bandh on 22 June to protest against the “abnormal price hike” in electricity charges implemented this month, which they say will hurt the trade and industry sectors.
In a letter addressed to all its members, including the president and vice-president, and associations, KCC&I said, “We request all the Trade and Industry to close their establishment on 22 June. This is in protest of abnormal price hike in the electricity charges by ESCOM (Electricity Supply Corporation of Malawi Limited)”.
According to news reports, KCC&I said that the tariff hike will increase their operational costs and affect their competitiveness in the market.
The protests come just over a month after the Siddaramaiah-led Congress government came to power, after the party defeated the Bharatiya Janta Party (BJP) in the assembly elections held on 10 May. After its formation, the government announced a slew of welfare schemes and initiatives, such as free rice distribution, loan waiver for farmers, and also rolled out ‘Gruha Jyoti’ scheme offering 200 units of free electricity to domestic consumers.
However, earlier this month, the Karnataka Electricity Regulatory Commission (KERC) increased the price of electricity by Rs 2.89 per unit for those using more than 200 units per month, despite the CM’s free electricity pledge.
According to the letter issued by KCC&I Saturday, 24 district chambers and some other industry associations have also decided to join the “agitation”. The KCC&I said that they hope that the government will respond to their request.
‘Previous government brought hikes’
According to the government, the KERC approved a tariff hike of 70 paise per unit for electricity consumers in May. The hike was implemented from 1 June, along with arrears of 70 paise per unit for April.
The KERC reportedly said the hike was necessary to cover the revenue gap of Rs 3,897 crore for the electricity supply companies (ESCOMs). However, it also said that the tariff hike will not affect domestic consumers who use up to 200 units per month.
Meanwhile, the government had reportedly clarified that it was the previous government led by then BJP chief minister Basavaraj Bommai that had brought in these hikes. The revised prices have only been implemented now.
According to the KCC&I letter, for the past eight days, chamber members have made attempts to convey the “seriousness of the impact” of the hike in electricity charges to the officials, however, “no solution is forthcoming”, it alleged.
Karnataka Chamber of Commerce and Industries (KCC&I) has called for a Karnataka bandh on June 22nd to protest against the abnormal price hike in electricity charges: KCC&I pic.twitter.com/vlV4r3cjMg
— ANI (@ANI) June 18, 2023
“To draw the attention of the government, we are calling for this bandh. We wish to find a solution and get a reduction in the electricity charges. We hope that the government will respond to our request,” it added.
Meanwhile, in a clarification to the public, the electricity department, in a tweet on 15 May said, “KERC determines and notifies the tariffs usually by the end of March for the financial year starting 1st April. In the present year, the KERC tariff order was notified on 12-05-2023, somewhat delayed because of legislative elections and code of conduct.”
ಕರ್ನಾಟಕ ಸರ್ಕಾರದ ಇಂಧನ ಇಲಾಖೆಯ ವಿದ್ಯುತ್ ದರ ಪರಿಷ್ಕರಣೆಯ ಕುರಿತು ಸಾರ್ವಜನಿಕ ಸ್ಪಷ್ಟೀಕರಣ.
Clarification to the public regarding #Tariff Revision/Hike by Energy department of Karnataka.#Karnataka #tariff #tariffhike #electricity #clarification @EnergyDeptGoK @CMofKarnataka @thekjgeorge pic.twitter.com/07emRPSJrp
— Namma BESCOM (ನಮ್ಮ ಬೆಸ್ಕಾಂ) (@NammaBESCOM) June 15, 2023
Confirming the Karnataka government’s claim, KERC in its clarification also added, “The new government in the state was formed on 20-05-2023; that is, the tariff order was notified prior to the formation of the new government.”
(Edited by Richa Mishra)
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