FKCCI opposes the proposed hike in power price

NT Correspondent

Bengaluru: Federation of Karnataka Chambers of Commerce and Industry (FKCCI) on Saturday strongly opposed the proposal to further hike electricity prices in the state, arguing that it would have an adverse effect on domestic consumers and businesses of all sizes.

FKCCI President BV Gopal Reddy said the recent appeal by Electricity Supply Companies (ESCOMs) to Karnataka Electricity Regulation Commission (KERC) for revision of prices was a cause of concern, adding that the extra expenditure might lead to closure of smaller businesses “It is known to all that the state ESCOMS have filed with KERC for revision of electricity charges.

The Karnataka Electricity Regulatory Board has published details through advertisements in newspapers and sought objections from the public within 30 days. Looking at the petitions submitted by them, the effect of power increase on the industrial and commercial sectors of our state will have a serious impact on the manufacturing and service sectors affecting the economic development of our state,” Reddy said.

“We would like to inform that there will be a severe impact on 15,147 HT (High Tensions) consumers and around 5,35,220 small scale industrial units in our state. Small industries account for 3.20 percent of total electricity usage in the state and employ approximately 40 lakh persons.

Each employee is responsible for a family of four. That is, about 1.6 crore people are taken care of by MSME (Micro, Small and Medium-Sized Enterprises) reducing the burden of government in the area of food, shelter and education.

Similarly, HT users consume about 16.30 percent of electricity. As the electricity rates go up, the expenses in their businesses will increase, and the companies will be forced to shut down,” he added