KERC Rejects Mescom’s Three-Year Extension, Enforces HT Industrial Demand Charge Relief In Karnataka

The Karnataka Electricity Regulatory Commission (KERC) has rejected the Mangalore Electricity Supply Company (MESCOM)’s request for a three-year extension to implement a provision aimed at reducing demand charges for High Tension (HT) industrial consumers affected by excessive power outages.

In its order dated August 31, 2026, KERC directed all electricity distribution companies in Karnataka to implement the provision immediately. The order was signed by KERC Chairman P. Ravi Kumar and members H.K. Jagadeesh and Jawaid Akhtar.

The provision was introduced under the Tariff Order 2025 and came into effect on April 1, 2026. It seeks to provide financial relief to HT industrial consumers that experience frequent and prolonged electricity interruptions, which can disrupt manufacturing activities and increase operational costs.

KERC observed that distribution utilities had already been provided sufficient time to strengthen their networks and establish systems to monitor and record power interruptions. During its 527th meeting held on August 6, 2026, the Commission concluded that allowing further delays would weaken the objective of the provision and postpone financial relief for eligible consumers.

Under the ruling, distribution licensees must maintain verifiable records of electricity interruptions, including the duration, cause and specific grid element responsible for each outage. These records will be used to calculate applicable reductions in demand charges and must be submitted to KERC whenever required.

The order also establishes clear financial responsibility for outages. If an interruption is caused by a transmission system failure, the associated financial liability will be recovered from Karnataka Power Transmission Corporation Limited (KPTCL). However, when an outage originates within the distribution licensee’s system or is under its control, the concerned utility will bear the financial impact.

KERC’s decision reinforces the implementation of outage-related demand charge reductions and is intended to encourage distribution companies to improve grid reliability while ensuring financial protection for HT industrial consumers affected by prolonged power disruptions.