Bengaluru: Amid back-to-back revisions in electricity tariffs burdening commercial and industrial consumers, the Karnataka Electricity Regulatory Commission (KERC) has offered partial relief to these high-paying segments.The commission has ordered the continuation of the discounted energy rate scheme (DERS) for two more financial years, with a few modifications.In its latest order issued Tuesday, the commission noted that the scheme — first introduced in 2021 for HT installations and later extended to select LT categories — has resulted in significant benefits for electricity supply companies (Escoms). The decision comes close on the heels of a request by Bescom, which sought an extension of the scheme along with the inclusion of open access consumers.While approving the extension, the commission introduced a key modification allowing participation of open access consumers. Sources in Bescom revealed to TOI that earlier, open access consumers had to forgo their open access or wheeling arrangements to avail DERS benefits.Under the revised framework, consumers across categories — including HT-2(a) industries, HT-2(b) commercial and non-industrial installations, HT-3(a) commercial lighting and heating, and LT-5 (temporary category) — can now opt for the scheme.However, open access consumers will be excluded from certain incentives, such as the additional 20% contract demand without penalty for exceeding the sanctioned load. The KERC order also clarifies the method for calculating base consumption for new participants.“If the consumer is opting for DERS during 2026-27 or 2027-28, their base consumption will be determined as the average monthly usage recorded in 2024-25 and 2025-26. If the continuous data is not available, a minimum of six months’ consumption will be considered to extend the benefits of DERS,” clarified a Bescom engineer.Existing participants have been granted partial exemption from revised conditions, particularly with respect to previously contracted open access power. However, they will not be eligible for the additional 20% demand-related incentives. While Escoms have projected the move as beneficial for industry and commerce, trade bodies have criticised the scheme as “discriminatory” in its design and approach.“Prior to DERS, Escoms had a special incentive scheme under which they were giving a special incentive of Re 1 per unit to the HT consumers for any energy consumption over and above the established base consumption during the off-peak hours of the day, largely between 10am and 6pm. This was available throughout the year and benefited cement, steel, fabrication and other manufacturing industries. But in stark contrast to the special incentive scheme, the DERS scheme is applicable only during the monsoon or off-season between June and Dec due to the low demand. Just because the govt has surplus energy at its disposal, they want to offer the discount by withdrawing the special incentive schemes that were earlier introduced during previous tariff revisions for industrial consumers, which were highly beneficial to the sector,” explained an energy consultant, part of the Energy Committee of the Federation of Karnataka Chamber of Commerce and Industries (FKCCI).FKCCI office-bearers argued that DERS focuses on incentivising increased consumption beyond a base load at a flat or discounted rate, whereas the ToD tariff differentiates pricing across time blocks — such as peak hours, off-peak hours and solar hours — enabling better load management for Escoms based on power availability.
