KERC Issues True-Up Tariff Order; BESCOM Consumers to Pay 56 Paise More per Unit

KERC has issued a true-up tariff order, allowing BESCOM to increase electricity rates by 56 paise per unit to cover revenue losses. While some ESCOMs will refund customers, BESCOM and CESC users in Karnataka will see higher power bills from May 2026.

Electricity consumers across Karnataka are set to see a mixed impact on their power bills following a new tariff order issued by the Karnataka Electricity Regulatory Commission. While customers in certain regions will face a tariff hike, others will benefit from refunds due to surplus earnings by their respective power distribution companies. The revised structure, aimed at addressing financial imbalances from the 2024–25 financial year, will come into effect for electricity consumed between May 1, 2026, and April 30, 2027.

Tariff Hike for BESCOM and CESC Customers

The Bangalore Electricity Supply Company has been permitted to increase tariffs by 56 paise per unit, while the Chamundeshwari Electricity Supply Corporation will raise charges by 15 paise per unit. These increases are intended to compensate for revenue shortfalls incurred during the 2024–25 financial year.

Refunds for Consumers in Other Regions

In contrast, several ESCOMs reported surplus revenues and have been directed to pass on the benefit to consumers:

• Hubli Electricity Supply Company – 10 paise refund per unit 
• Gulbarga Electricity Supply Company – 10 paise refund per unit 
• Mangalore Electricity Supply Company – 9 paise refund per unit 
• Hukkeri Rural Electric Co-operative Society – 155 paise refund per unit

How the Refund Will Be Calculated?

The refund will be calculated based on electricity consumption during the 2024–25 financial year. For example, if a MESCOM customer consumed an average of 100 units per month during that period, they will receive a refund of 9 paise per unit on those 100 units in their 2026–27 bills. This amount will be clearly mentioned under a separate heading titled ‘FY25 True-up Charges’.

BESCOM’s Financial Gap Explained

BESCOM reported a significant revenue deficit. While the commission had estimated its operational cost for 2024–25 at ₹32,019 crore, actual expenses rose to ₹34,087 crore, resulting in a shortfall of approximately ₹2,024 crore. Based on its Annual Performance Report (APR), BESCOM sought approval to recover this gap, leading to the tariff hike.

Similarly, CESC Mysuru reported a revenue deficit of ₹121.71 crore, which led to a tariff increase of 15 paise per unit.

Surplus Reported by Other ESCOMs

On the other hand, several companies recorded surpluses:

• MESCOM reported a surplus of ₹276.48 crore 
• HESCOM recorded a surplus of ₹133.46 crore 
• GESCOM posted a surplus of ₹90.40 crore 
• HRECS (Hukkeri) earned significantly more than it spent, resulting in a higher refund of 155 paise per unit

Revised Rate Changes (Per Unit) 

• Bangalore Electricity Supply Company – Increase of 56 paise per unit 
• Chamundeshwari Electricity Supply Corporation – Increase of 15 paise per unit 
• Mangalore Electricity Supply Company – Decrease of 9 paise per unit 
• Gulbarga Electricity Supply Company – Decrease of 10 paise per unit 
• Hukkeri Rural Electric Co-operative Society – Decrease of 155 paise per unit

What This Means for Consumers?

For the 2026–27 period, electricity bills will increase for consumers under BESCOM and CESC Mysuru. Meanwhile, customers served by MESCOM, HESCOM, GESCOM, and HRECS will benefit from reduced bills due to the refund mechanism.

Consumers are advised to carefully review their electricity bills to understand the revised charges and applicable refunds under the new tariff structure.