Karnataka to increase Electricity Tariff rates from April 2025

Karnataka is set to witness an increase in electricity tariffs. The Karnataka Electricity Regulatory Commission (KERC) has sanctioned the proposal presented by the Electricity Supply Companies (ESCOMs). The revised rates will come into effect on April 1 2025. This will create a financial burden on consumers who are already struggling with rising living costs.

Several power distribution companies, including BESCOM, MESCOM, and JESCOS, had requested a tariff increase, citing rising operational expenses and financial constraints. They proposed an increase of ₹1 to ₹1.5 per unit, justifying it as necessary to maintain infrastructure and ensure an uninterrupted electricity supply.

KERC had sought public opinion before making its decision. However, despite objections from consumers and businesses, the commission approved the hike. ESCOMs also insisted on a three-year, one-time tariff revision to ensure pricing stability.

The tariff hike is expected to impact middle-class and lower-income households struggling with inflation. Higher electricity bills will force families to reduce other essential expenditures.

Key Updates

• The new electricity tariffs will come into effect from April 1.
• Power distribution companies sought a hike of ₹1 to ₹1.5 per unit.
• ESCOMs cite higher operational costs, infrastructure investment, and financial constraints as the primary reasons.
• KERC reduced electricity tariffs last year, but a steep increase is expected this year.
• ESCOMs have assured that the revised tariff will remain the same for three years.

Small and medium enterprises (SMEs) will also feel the pinch, as many businesses depend heavily on electricity. Increased tariffs could raise production costs, leading to higher prices for goods and services. This could further drive inflation, affecting consumers’ purchasing power.

“The cost of living is already high, and now we have to pay more for electricity. This will make household expenses even harder to manage,” said a Bengaluru resident.

The opposition parties and consumer rights groups have criticised the approval of the tariff hike. Many argue that instead of providing relief, the government is increasing the financial burden on citizens. Critics have also questioned why the announcement was delayed until after the Assembly session, calling it a strategic move to avoid public backlash.

Opposition leaders have urged the government to offer subsidies or rebates for lower-income families to offset the impact of higher power bills.

Tips to reduce electricity consumption at home

Because of the tariff hike, consumers can reduce their electricity consumption by using

• Energy-efficient appliances like LED bulbs and inverter-based devices
• Monitoring electricity consumption and unplugging devices when not in use
• Optimising appliance use by running high-energy devices during off-peak hours
• Installing rooftop solar panels is a long-term solution that can significantly reduce dependence on grid electricity.

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FAQs

1. Why is the electricity tariff being increased in Karnataka?

The increase is due to rising operational costs and financial constraints faced by power distribution companies like BESCOM and MESCOM.

2. When will the new electricity tariffs take effect?

The revised rates will be implemented starting April 1, 2025.

3. How much will the electricity tariff increase?

The tariff is set to rise by ₹1 to ₹1.5 per unit.

4. How will this tariff hike affect consumers?

It will lead to higher electricity bills, putting additional financial pressure on households and businesses, especially those struggling with inflation.

5. What can consumers do to reduce their electricity bills?

Consumers can use energy-efficient appliances, monitor usage, and consider installing solar panels to reduce dependence on grid electricity.