KERC turns 25; Consumers demand more stringent regulations

KERC has played an important role in determining tariffs and resolving disputes between escoms and consumers. | Photo Credit: File photo

It has been 25 years since the Karnataka Electricity Regulatory Commission (KERC), an independent regulatory body primarily focused on the protection of electricity consumers, was established under the Karnataka Electricity Reforms Act of 1999. Karnataka was the second state to pioneer the power sector. After Odisha, Electricity Regulatory Commission will be formed in India.

The Commission in its report “25 Years of Dedicated Service to Karnataka State and Nation,” highlighted its service to over 2.9 crore consumers. KERC has played a decisive role in fixing tariffs, resolving disputes between electricity supply companies (escoms) and consumers and issuing licenses to distributors among other responsibilities.

One of the major achievements of KERC is to reduce the transmission and distribution (T&D) deficit from 35.7% in FY 2000 to 14.05% in FY 2024. Issuance of timely tariff orders, promotion of renewable energy through preferential tariffs, and rationalization of the structure. Its best practices.

In recent years, KERC has eased administrative procedures to increase the permissible load for installing rooftop solar plants and passed draft regulations for rooftop aero turbines. It also introduced Standard Operating Procedures (SOP) for Electric Vehicle (EV) charging stations across the state. Earlier this year, KERC won praise from industries for advocating the removal of cross-subsidy charges on industrial and commercial consumers used to fund free electricity schemes.

Relevance of KERC

Despite its achievements, activists and consumer advocates have raised concerns about KERC’s relevance and effectiveness in recent years. According to a former advisory member of KERC, “Until 2010, the Commission maintained strong accountability for Eskoms. In recent years, however, it has become escom-centric and less objective, ignoring its statutory responsibilities.

The 1999 Act mandated the presence of a senior officer to represent consumer interests in the Commission. Consumer rights activist YG Muralidharan served in the role for 10 years, but the post is vacant after his departure. Activists noted that this has led to a decline in consumer awareness of KERC’s operations. Public hearings, once well attended, now see minimal participation. “It is for this reason that tariff books are hundreds of pages long and cost more than Rs 500 per book, which keeps consumers away from it,” they said.

Activists call for greater transparency, stricter oversight of escoms, and measures to increase consumer engagement to ensure that KERC remains relevant and effective in the evolving energy landscape.