Power tariff hike likely in Karnataka, proposal sent to KERC

Bengaluru : Amid rising prices of essential commodities, the people of Karnataka are likely to face yet another financial burden as electricity tariffs may soon be increased across the state.

Power supply companies (ESCOMs), which are struggling with mounting financial losses, have approached the Karnataka Electricity Regulatory Commission (KERC) seeking permission to revise electricity rates.

Bangalore Electricity Supply Company (BESCOM) has formally submitted a proposal to the regulatory body requesting a hike of Re 1 per unit. The company has cited severe revenue shortfall and increasing operational costs as the main reasons behind the demand.

According to officials, most of the state-run electricity supply companies are running in losses and are finding it difficult to manage expenses with the current tariff structure.

Possible implementation from April 1

The ESCOMs have submitted detailed annual reports to KERC, seeking tariff revision from the coming financial year. After conducting public hearings and reviewing objections from consumers, the regulatory commission will take a final decision.

Though BESCOM has asked for a Re 1 per unit hike, sources indicate that the actual increase may be in the range of 8 to 10 paise per unit. If approved, the revised tariff is likely to come into effect from April 1, 2026.

The hike is expected to impact domestic, commercial as well as industrial consumers across Karnataka. Power companies have reportedly stated that they are facing an overall revenue gap of more than Rs 4,900 crore and that tariff revision is unavoidable to maintain financial stability.

In March last year, KERC had approved an increase of 36 paise per unit to compensate for rising power procurement and operational costs. However, even after that revision, the income of ESCOMs has not matched their growing expenditure.

Officials say that the financial calculations estimated by KERC during the previous tariff revision have gone off balance due to higher-than-expected expenses.

Public hearings to be held

To bridge the revenue gap of around Rs 4,620 crore, ESCOMs have once again appealed for tariff rationalisation. KERC is scheduled to hold public hearings from February 16 in different parts of the state to listen to objections and suggestions from consumers, industry representatives and other stakeholders before taking a final call.

Power supply companies have argued in their report that rising fuel costs, maintenance expenses and purchase of electricity from private generators have significantly increased their financial burden. They have urged KERC to allow a tariff hike as the only practical solution to manage losses.

The proposed increase comes at a time when citizens are already reeling under inflation and rising costs of daily essentials. Consumer groups and opposition parties are likely to oppose any hike, stating that it will further strain middle-class and poor households.

While electricity tariffs for the current and next financial years have already been fixed, experts believe that an additional revision may be inevitable to compensate for previous losses. The final decision now rests with KERC after completion of the statutory process.

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