BENGALURU: In the backdrop of a hike in power tariff in the state, the Bruhat Bangalore Hotels’ Association has urged Energy Minister K J George to defer the move by at least one year, and said that frequent hikes are affecting their business. They also suggested that instead of hiking tariff, the government can compensate for it by plugging leakages in power transmission and distribution.
Association president P C Rao told TNIE, “Apart from the hike in power tariff, there is an increase in Fuel & Power Purchase Cost Adjustment (FPPCA) and Fixed Demand Charges. The tax on electricity now stands at 9 per cent and this is hurting hotels in their business.” Rao said there are more than 24,000 small and big hotels in the city, and the hotel industry is among the high power-consuming sectors.
The hotel association has urged the government to reduce tax on electricity from 9 per cent to 3 per cent. They insisted that pending bills from state and central government departments should be collected with interest, and prepaid electricity meters installed, and the security deposit of consumers be returned.