In Adani power row, Karnataka Escoms get ₹1,000 crore jolt

Bengaluru: What began as a tariff dispute with Adani Power-owned Udupi Power Corporation (UPCL) has now become a Rs 1,000-crore-plus liability for Karnataka’s electricity supply companies (Escoms). In August, Supreme Court refused to stay Adani Power’s invoices even as an appeal before Appellate Tribunal for Electricity (APTEL) is pending.UPCL project’s tariff has been locked in litigation and subjected to repeated revisions since 2012. Adani Power had raised a Rs 786-crore claim — Rs 423 crore in carrying cost and Rs 363 crore as accrued interest. Acting on its own reconciliation, Power Company of Karnataka (PCKL) and the discoms disputed the claim, putting the amount payable at Rs 419 crore, including Rs 215 crore towards carrying cost, which they said had already been paid.Discoms have made the payment under protest, while maintaining their legal battle is far from over.Since APTEL is set to pronounce its decision following Supreme Court’s direction, Escoms are hoping Karnataka Electricity Regulatory Commission (KERC) will approve their request to recover the excess payment towards compound interest on the initial tariff amount from electricity consumers.In its Jan 7, 2026 order, Central Electricity Regulatory Commission rejected Karnataka discoms’ argument that carrying cost arising from APTEL’s interim orders could be excluded. It held that successive tariff revisions flowing from APTEL and CERC orders had created differential amounts for which Adani Power was entitled to carrying cost. Energy department sources said that out of the Rs 1,005 crore paid to Adani Power, Bescom alone has paid Rs 456 crore, accounting for 45% of the payout.+++++Tariff pe tariff* In 2010, Central Electricity Regulatory Commission determines provisional and final tariffs for Udupi project* Appellate Tribunal for Electricity, in 2013 and 2014, directs Escoms to pay tariffs and arrears in instalments* Later, CERC revises tariff following APTEL’s final directions, setting off chain of differential payments and carrying-cost claims* At heart of dispute is how much interest discoms must pay on tariff differentials that accumulated as various tariff orders were revised over the years++++++++Who’ll bear Rs 1,005 crore burden?* Bescom has already paid dues to Adani Power and has since recovered it from consumers through Fuel and Power Purchase Cost Adjustment (FPPCA) arrangement levied through monthly electricity bills* Now, Karnataka Electricity Regulatory Commission has refused to validate the entire recovery* Contends Escoms can recover only simple interest, and not compounded interestYou Can Also Check: Gold Rate in Bengaluru | Silver Rate in Bengaluru | Bank Holidays in Bengaluru | Public Holidays in Bengaluru | Bengaluru AQI | Weather in Bengaluru | Petrol Price in Bengaluru | Diesel Price in Bengaluru | CNG Price in Bengaluru | LPG Price in BengaluruStay updated with the latest Bengaluru news. Download the TOI App.