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Karnataka residents rejoice as electricity rates reduced for first time in 15 years

The Karnataka State Electricity Regulatory Commission (KERC) has announced a significant reduction in electricity rates, the first in over fifteen years. The revision eliminates the slab system for domestic consumption charges, fixing the rate at Rs. 5.90 per unit for all consumers. Commercial users, including LT-connected establishments, will also benefit.

Electricity rates slashed in Karnataka after 15 years, effective today; check details vkp
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First Published Apr 1, 2024, 9:00 AM IST

Residents and businesses in Karnataka can rejoice as the Karnataka State Electricity Regulatory Commission (KERC) has announced a significant reduction in electricity rates, marking the first decrease in over fifteen years. Effective immediately, on April 1, the revised rates have been introduced to ease the burden on consumers and bolster economic growth.

In a significant departure from the previous system, consumers will now experience a notable decrease in electricity tariffs, with the most striking change being the elimination of the erstwhile slab system for domestic consumption charges. Previously, consumers were subject to fluctuating rates based on their usage; however, under the new order, regardless of the units consumed, the rate is fixed at Rs. 5.90 per unit. This alteration ensures uniformity in household electricity rates across all distribution companies (Escoms).

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For households consuming over 100 units, the rate has been reduced to Rs. 5.90 per unit, marking a considerable drop from the previous Rs. 7.00 per unit. Likewise, for those consuming less than 100 units, the rate will see a slight increase from Rs. 4.75 to Rs. 5.90 per unit. Nonetheless, it's important to note that 97 per cent of consumers falling within this bracket are already enrolled in the Gruha Jyoti Yojana, effectively shielding them from the impact of the price adjustment.

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Commercial users are also set to benefit from the revised rates, with LT-connected establishments such as hospitals and educational institutes witnessing a reduction in tariffs. Previously set at Rs. 7.75 per unit, these entities will now pay Rs. 7.25 per unit, providing much-needed respite to businesses.

Furthermore, the intricate slab system for demand-based charging in commercial connections has been abolished, thereby simplifying the tariff structure and alleviating the financial strain on commercial users. The previous rate of Rs. 8.50 per unit has been reduced to Rs. 8, further easing the burden on businesses.

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