Electricity rate set to increase in Karnataka from April 1?
Karnataka's major power distributors propose a 50-60 paise/unit hike in electricity tariffs to KERC, citing increased costs. BESCOM suggests a 49 paise hike. The adjustment aims to offset financial strains caused by rising coal and procurement expenses for the upcoming fiscal year. The Gruha Jyoti scheme enrollees are exempt, but others may face increased rates.
FollowKarnataka residents might face an increase in electricity prices come April 1st, as five major power distribution companies, including Bengaluru Electricity Supply Company (BESCOM), have put forth a proposal to the Karnataka Electricity Regulatory Commission (KERC). The proposal suggests a hike in tariffs by 50 to 60 paise per unit.
BESCOM, in its proposal submitted in the final week of December, seeks a 49 paise increase per unit. However, the KERC will review this proposal, aiming to adjust the rates in a manner that doesn't overly burden either the distribution companies or the consumers. These revised rates are expected to take effect from the start of the new fiscal year, 2024.
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Additionally, other electricity suppliers such as Mangalore Electricity Supply Company (MESCOM), Hubballi Electricity Supply Company (HESCOM), Kalaburagi Electricity Supply Company (JSCOM), and Chamundeshwari Electricity Supply Company (CESC-Mysore) have also petitioned the KERC for tariff revisions, seeking an increase ranging between 50 to 60 paise per unit.
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Sources from KERC mention that the rise in the cost of coal purchase, power procurement, and supply has strained the management of these companies, prompting the need for tariff adjustments to offset these losses in the forthcoming financial year of 2024-25.
While this annual tariff revision is customary, it's noteworthy that this is the first time since the initiation of the Gruha Jyoti Yojana that such a hike has been proposed by these companies. Fortunately, customers enrolled in the Gruha Jyoti scheme are not expected to be impacted by this revision. However, households and commercial users not covered under this scheme might bear the brunt of the increased rates.
