KERC to shock citizens? Escoms propose electricity price hike amid financial crisis
Karnataka's Escoms propose electricity rate hikes of ₹1.50 and ₹1.20 per unit, citing financial losses from rising coal and power procurement costs. KERC is reviewing the proposals and public opinions, with a decision expected soon, potentially increasing consumers' bills in the new year.

In what could burden Karnataka's electricity consumers, electricity supply companies (Escoms) have proposed a price hike to the Karnataka Electricity Regulatory Commission (KERC). The move comes as Escoms grapple with mounting costs due to coal purchases, power procurement, and supply expenses.
Escoms such as Bescom, Hescom, Mescom, Jescom, and Sescom have filed a request with KERC to revise electricity rates, citing significant financial losses. The companies argue that the current rates, revised downward by KERC in April, are unsustainable and have worsened their financial burden.
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Bescom has proposed a rate hike of ₹1.50 per unit, while other Escoms have suggested an increase of ₹1.20 per unit. These hikes are aimed at offsetting the escalating costs of power generation and supply.
The Escoms attribute their losses to several factors:
1. Increased coal purchase costs.
2. Rising electricity procurement expenses.
3. Operational and supply challenges.
The companies demand that without a price revision, their financial health will deteriorate further, making it difficult to sustain operations.
KERC, which reviews and revises electricity tariffs annually, is now evaluating the proposals submitted by the Escoms. As part of the process, public opinions were collected earlier. KERC is expected to issue its decision soon, taking into account both consumer interests and the Escoms' financial viability.
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If approved, the proposed rate hikes could mean higher electricity bills for consumers starting in the new year. This potential increase is likely to spark debates, as citizens and businesses brace for a new financial burden.
While KERC has not yet commented on the proposed hikes, it has historically balanced the needs of Escoms with consumer affordability.