BESCOM's new surcharge leaves entrepreneurs juggling with financial strain

Bangalore Electricity Supply Company (BESCOM) has dealt a new blow to businessmen running an effort to alleviate the burden of expensive electricity bills.

Recently, an order was issued by BESCOM to impose an additional surcharge of 35 paise per unit on the transportation cost of electricity, known as the wheeling charge, for those purchasing electricity in the open market. This decision has been made retroactively effective from June, placing an added financial strain on businesses that rely on open market power purchases.

On May 12, the Karnataka Electricity Regulatory Commission (KERC) issued an order setting the cost at 1.48 rupees per unit for this particular category. Subsequently, Sohan Renewable Energy India Pvt. and Umia Holding Pvt. filed an appeal in the High Court, challenging the KERC’s order. BESCOM and PCKL were also named participants in the case.

Following a thorough inquiry, the High Court recently issued an order authorizing an additional surcharge of 35 paise per unit. BESCOM has subsequently instructed the collection of this surcharge, commencing with the June billing cycle.

Businessmen, seeking respite from escalating electricity costs, had turned to the open market in search of more affordable options. However, their hopes of reducing the burden have been dampened by the imposition of this new tax.