Power Struggles: Why Karnataka is witnessing a bandh across the state today

Karnataka has called for a day-long bandh today, 22 June, due to an increase in the cost of power. The Hubballi-based Karnatak Chamber of Commerce and Industry (KCCI) issued a call for the strike. “We request all the trade and industry to close their establishments on 22 June. This is in protest of abnormal price hike in the electricity charges by Electricity Supply Companies (ESCOMs)," KCCI said, adding that for the past eight days, it 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," it said.

Karnataka Chamber of Commerce and Industries (KCC&I) has called for a Karnataka bandh on June 22nd to protest against the abnormal price hike in electricity charges: KCC&I pic.twitter.com/vlV4r3cjMg

— ANI (@ANI) June 18, 2023

Also read: Former Karnataka CM Bommai slams Congress govt's decision to repeal anti-conversion law What is the issue? After the Karnataka Electricity Regulatory Commission (KERC) approved the requests of energy supply companies, electricity prices immediately increased. In accordance with a tariff order issued on 12 May, a 70-paise increase per unit was implemented in June. Moreover, bills for June included arrears of 70 paise per unit relating to April. As a result, the fuel and power purchase price agreement (FPPPA) charge, which was originally set at Rs 1.49 per unit, was also imposed in June and will now be charged at Rs 1.81 per unit in July. As a result, the total tariff increase for June is Rs 2.89 per unit, as per Business Today. A political controversy has resulted from this, with the BJP accusing the Congress-led government of hiking the tariff just days after making an election pledge to offer free electricity for up to 200 units under the Gruha Jyoti Scheme.

#WATCH | Hubballi unit of Karnataka Chamber of Commerce and Industries protest against the state govt alleging abnormal price hike in electricity charges pic.twitter.com/z50YhsTI6E

— ANI (@ANI) June 22, 2023

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According to News18, this month, several people also received outrageous bills, although Bescom (Bangalore Electricity Supply Company Limited) claimed that this was due to an error. The Gruha Jyoti scheme is for 200 units, according to Karnataka’s power minister KJ George, and anything beyond that will require payment. “If average power consumption plus 10 per cent is less than 200 units, it will be subsidised. Anything over and above that will have to be paid. Consumers who use more than the allotted units, have to pay for the extra units used. 9 per cent of tax will be included in it,” George said, according to Hindustan Times. The fuel and power purchase cost adjustment (FPPCA) and April arrears, according to the Karnataka Electricity Regulatory Commission (KERC), were the causes of the increase. The outcry, according to Karnataka chief minister Siddaramaiah, was unnecessary because electricity prices will drop starting in the next month. Since customers had been receiving the charges for two months, he claimed that several people thought the power bills were outrageous, as per Business Today. “Tariff will not come down. It is appearing heavy because two months’ bill was given. Next month onwards, the bills will be given for each month. Subsequently, the billing amount will come down. Also read: Karnataka to launch two of its poll-promised schemes in August: CM Siddaramaiah Who is participating? District Chambers from Mysore, Davangere, Koppal, Bagalkoti, Dharwad, Sirsi, Karwar, Bidar, Shivamoga, Kolar, Mandya, Chickmangalore, Yadgir, Chitradurga, KalyanKamataka, Haveri, Hassan, Bellary, and other business associations will participate in the bandh, reported News18. MCCI, the chamber of commerce and industry in Mysuru, has also backed the request for a bandh. Hebbal, Hootagalli, Kadakola, Nanjangud, and other business associations have endorsed the bandh call, according to MCCI president KB Lingaraju. [caption id=“attachment_12774052” align=“alignnone” width=“640”] After the Karnataka Electricity Regulatory Commission (KERC) approved the requests of energy supply companies, electricity prices immediately increased. Graphic: Pranay Bhardwaj[/caption] The Federation of Karnataka Chambers of Commerce and Industry (FKCCI) asked its affiliated organisations not to protest or request a bandh after talks with the government today, reported CNBC-TV18. Only Hubli KCCI, according to the FKCCI, has called for a bandh and protest today. Several trade associations, including FKCCI, KASSIA, and Peenya Industries Association, distanced themselves from Thursday’s bandh, according to the newspaper. What’s closed? The bandh call, according to KCCI president Vinay Javali, is voluntary and only for businesses. Both the delivery of necessary services and the movement of cars won’t be interfered with. Businesses will lose money as a result of the day-long bandh, but the industry might not survive with such an unusually high increase in power prices, according to him. According to another Times of India article, Bengaluru’s top businesses and industry associations have decided not to participate in the bandh and have promised the public that business will continue as usual on Thursday. With inputs from agencies Read all the  Latest News,  Trending News,  Cricket News,  Bollywood News, India News and  Entertainment News here. Follow us on  Facebook,  Twitter and  Instagram.