On Saturday, June 17, the Karnataka Chamber of Commerce and Industries (KCC&I) called for a “bandh” on June 22 in the wake of the abrupt electricity price hike by electricity supply companies (ESCOMs).
The KCC&I stated in its statement that it tried for eight days to communicate the impact of the high electricity rates, but all efforts were in vain.
“We request all the trade and industry to close their establishment on June 22. This is in protest of abnormal price hike in the electricity charges by ESCOMs. For last 8 days we have made attempts to convey the seriousness of the impact of the hike in electricity charges. However, no solution is forthcoming from the Officials or Government representatives.”
The KCC&I further urged all members to join the strike in order to bring the issue to the CM Siddaramaiah-led government’s notice.
“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,” the letter further stated.
Moreover, KCCI added in its letter that the District Chambers of Gadag, Bijapur, Ranebennur, Raichur, Talikoti, Vijaynagar, Mysore, Davangere, Koppal, Bagalkoti, Dharwad, Sirsi, Karwar, Bidar, Shivamoga, Kolar, Mandya, Chickmangalore, Yadgir, Chitradurga, KalyanKarnataka, Haveri, Hassan, Bellary and other Industry Associations have also agreed to join the agitation.
Reacting to the KCC&I’s call for a Karnataka bandh on June 22, BJP leader Basanagouda R Patil tweeted, “In couple of years there will be exodus of industries from Karnataka to neighbouring states if government doesn’t consider the demands of the Industries.”
Earlier, OpIndia reported that the energy costs and power tariffs in Karnataka have been increased by Rs 2.89 per unit in June despite Siddaramaiah’s state government’s free electricity pledge. Now the citizens will have to pay an additional Rs 2.89 per unit if their power usage exceeds the 200 units slab while paying the power bill.
The ‘fixed costs’ in the electricity bills produced by Escoms for June experienced a significant hike, ranging from Rs 50 to Rs 75 depending on the usage load. According to a Senior Bescom official, the invoices were created by the price decision issued by the Karnataka Electricity Regulatory Commission (KERC) notwithstanding widespread criticism of the Escoms.
A tariff increase of 70 paise was mandated by the KERC on May 13 with retroactive effect beginning on April 1, 2023. Similarly, the KERC updated the tariff a few days ago by including changes for gasoline and electricity purchase costs. “As KERC ordered us to collect the pending dues for April too along with that of May, the bill issued in June appears to be inflated. They will become normal from next month onwards,” a senior engineer with Bescom was quoted as saying.
On June 5, B.V. Gopal Reddy president Federation of Karnataka Chambers of Commerce & Industry (FKCCI) said that the hike of Rs 2.89 per unit in power bill has come as a dampener as it will increase the prices of their products & services and reduce their profit margin.
“Our feedback from our members reveals that some of the most vulnerable sections like micro and small-scale industries and small traders are finding it difficult to even survive due to high input costs. If recurring costs like power go up, they may even be forced to contemplate shutting shop. Those operating in the neighbourhood of other states may even explore possibilities of shifting to other states where such costs are lesser. We therefore fervently appeal to the government to first talk to representatives of Industry & Trade, take stock of their situation, and only then consider such issues of tariff revision,” Reddy stated.
The FKCCI further stated that any more load on the industry would be a “tipping point” for them to take drastic steps such as shutting down, shifting operations to other states, or reducing labour intake, consequently fueling unemployment.