New Delhi: The Karnataka Chamber of Commerce and Industries (KCC&I) has called for a Karnataka bandh on June 22 to protest against the “abnormal price hike” in electricity duty implemented this month, which they say Damage to business and industry sectors.
In a letter addressed to all its members, including the president and vice president, and unions, the KCC&I said“We request all trade and industry to close their establishments on June 22. This is in protest against the abnormal price hike in electricity tariffs by ESCOM (Electricity Supply Corporation of Malawi Limited).
As per news reports, KCC&I said that the tariff hike will increase their operating cost and affect their competitiveness in the market.
The protests came exactly a month after the Siddaramaiah-led Congress government came to power, after the party defeated the Bharatiya Janata Party (BJP) in the May 10 assembly elections. After its formation, the government announced several welfare schemes and initiatives, such as free rice distribution, loan waiver for farmers, and more. Griha Jyoti Yojana Offering 200 units of free electricity to domestic consumers.
However, earlier this month, the Karnataka Electricity Regulatory Commission (KERC) increased the power price by Rs 2.89 per unit for those using more than 200 units per month, despite the CM’s pledge of free power.
As per issue letter kcc and me by saturday24 district boards and some other industry associations have also decided to join the “movement”. KCC&I said they expected the government to respond to their request.
‘The previous government had brought the hike’
According to the government, the KERC had approved a hike of 70 paise per unit for power consumers in May. The hike was implemented from June 1, with April dues at 70 paise per unit.
KERC reportedly said the hike was necessary to cover the revenue gap of Rs 3,897 crore for 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 the then BJP chief minister Basavaraj Bommai which had brought these hikes. The revised prices have been implemented now.
According to KCC&I’s letter, for the past eight days, the members of the chamber have been making efforts to convey to the authorities the “seriousness of the impact” of the hike in electricity duty, however, “no solution is forthcoming”, it alleged.
Karnataka Chamber of Commerce & Industries (KCC&I) has called for Karnataka bandh on 22nd June to protest against abnormal price hike in electricity tariffs: KCC&I pic.twitter.com/vlV4r3cjMg
– ANI (@ANI) June 18, 2023
“To draw the attention of the government, we are giving this bandh call. we want to find a solution and get short in electricity charges. We hope that the government will respond to our request.
Meanwhile, on May 15, the electricity department clarified to the public in a tweet Said, “KERC sets and notifies tariffs for the financial year beginning April 1, usually by the end of March. In the current year, the KERC Tariff Order was notified on 12-05-2023, which was somewhat delayed due to legislative elections and model code of conduct.”
Public clarification on credit cards and credit card collection.
clarification regarding public #tariff Modification/Addition by Energy Department of Karnataka.#Karnataka #tariff #tariffhike #Electricity #the explanation @EnergyDeptGoK @CMofKarnataka @thekjgeorge pic.twitter.com/07emRPSJrp
– Namma Bescom (@NammaBESCOM) June 15, 2023
Confirming the Karnataka government’s claim, KERC also added in its clarification, “The new government in the state was formed on 20-05-2023; That is, the tariff order was notified before the formation of the new government.
(Editing by Richa Mishra)
Read also: You thought power subsidy was a Delhi-Punjab problem? View Tamil Nadu’s power sector mess