KERC turns 25; consumers demand more stringent regulations

KERC, Karnataka's electricity regulatory body, celebrates 25 years of service, facing challenges in maintaining consumer relevance and transparency.

It has been 25 years since the Karnataka Electricity Regulatory Commission (KERC), an independent regulatory body focused primarily on protecting electricity consumers, was established under the Karnataka Electricity Reform Act of 1999. Karnataka, a pioneer in the electricity sector, was the second State in India after Odisha to set up an electricity regulatory commission.

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

One of KERC’s major achievements is reducing Transmission and Distribution (T&D) losses from 35.7% in FY 2000 to 14.05% in FY 2024. The timely issuance of tariff orders, promotion of renewable energy through preferential tariffs, and rationalization of tariff structures are also among its best practices. 

In recent years, KERC has eased administrative processes for enhancing sanctioned loads to install rooftop solar plants and passed draft regulations for rooftop aero turbines. It also introduced a Standard Operating Procedure (SOP) for Electric Vehicle (EV) charging stations across the state. Earlier this year, KERC earned praise from industries for advocating the removal of cross-subsidy charges on industrial and commercial consumers used to fund free power schemes.

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

The 1999 Act mandates the presence of a senior officer to represent consumer interests within the commission. While consumer rights activist Y.G. Muralidharan served in this role for 10 years, the position has remained vacant since his departure. Activists note that this has led to a decline in consumer awareness about KERC’s functions. Public hearings, once well-attended, now see minimal participation. “This could be due to the fact that tariff books consist of hundreds of pages and cost over ₹500 a book, which keeps consumers away from it,” they said.

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