The Karnataka Electricity Regulatory Commission (KERC) has released a discussion paper calling for an increase in the wheeling and banking charges for renewable energy projects developed under the non-renewable energy certificate (REC) route in the state. According to the commission, the drastic reduction in wind and solar tariffs in the past few years has made renewable energy competitive with the conventional sources of energy. Therefore, the applicable charges can be increased. KERC has proposed to levy 25 per cent on normal transmission charges and/or wheeling charges and keep banking charges at 2 per cent for injected energy. For REC-based projects, the charges specified in KERC’s order dated October 9, 2013, are planned for continuation. The paper is open for comments and suggestions till January 31, 2018 and the regulations are expected to become applicable from April 1, 2018.