Karnataka revises power tariff: Lower energy charges, higher fixed costs

While this may increase bills for some, officials argue that lower energy charges will offset the impact.

Electricity consumers in Karnataka will see reduced energy charges but higher fixed costs starting April 1, 2025, as per the new multi-year tariff (MYT) order issued by the Karnataka Electricity Regulatory Commission (KERC).

For domestic consumers, the energy charge will drop from Rs 5.90 to Rs 5.80 per unit in 2025-26 and further to Rs 5.75 by 2027-28. However, the fixed charge per kilowatt (KW) will rise from Rs 120 to Rs 145 per month in the first year, reaching Rs 155 by the third year.

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While this may increase bills for some, officials argue that lower energy charges will offset the impact. Industrial and commercial consumers will also benefit. The HT-2 (a) industrial tariff will reduce from Rs 6.90 to Rs 6.60 per unit for the first two years and Rs 6.50 in the third. The HT-2 (b) commercial tariff sees a sharper cut, from Rs 8 to Rs 5.95 in the first year, dropping further to Rs 5.40 by 2027-28.

The tariff revision comes despite power supply companies proposing a 67 paise per unit hike for 2025-26, rising to 96 paise by 2027-28. KERC, however, rejected the steep increase and instead streamlined the tariff by eliminating sanctioned load slabs, ensuring a uniform charge structure.

Additionally, a surcharge announced earlier to cover pension and gratuity payments for retired Karnataka Power Transmission Corporation (KPTCL) and Escom employees will be levied at 36 paise per unit in 2025-26, decreasing to 34 paise by 2027-28.

While higher fixed costs may increase bills for households consuming over 200 units per month, industrial consumers have welcomed the tariff cut.

Also, read: Karnataka power tariff hiked, consumers to pay higher electricity bills from April 1