Karnataka Electricity Tariff Restructured: Lower Energy Rates, Higher Fixed Charges from April 2025:

The state-owned power supplier has modified the energy rates consumers will start paying from April 1, 2025. Karnataka Electricity Regulatory Commission (KERC) suggested a new multi-year tariff (MYT) order which states that, although energy charges will be lowered, fixed charges will be raised. As for now, citizens in Karnataka will be paying higher fixed charges beginning 2025, with domestic customers paying an energy charge of Rs 5.90, a drop to Rs 5.80 is expected for 2025-26 and then further drop to Rs 5.75 by 2027-28. Fixed charges will begin at Rs 120, climb to Rs 145, then Rs 155, reached by the third year.

Fixed energy costs will lead to increased bills for some citizens, but officials argue that, in the long term, the lower energy costs will offset the impact. Other citizens such as industrial and commercial consumers will also be benefiting. The HT-2 (a) industrial tariff will drop by 30 paisa, from Rs 6.90 to Rs 6.60 per unit for the first two years, falling to Rs 6.50 in the third year. The HT-2 (b) commercial tariff sees a sharper cut, with it’s rate from Rs 8 to 5.95 in the first year, and further drops to 5.40 by 2027-28.

Even as power supply companies geared up to raise proposed hikes from 67 to 96 paise per unit over the next two years, the KERC still rolled out a new tariff. Along with dismissing the significant increase, KERC also streamlined the tariff by removing sanctioned load slabs which guarantee a uniform charge structure.

A surcharge meant to begin covering pension and gratuity payments for retired employees of Karnataka Power Transmission Corporation Escoms and KPTCL will now be charged 36 paise per unit in 2025-26 and drop to 34 paise per unit by 2027-28.

Fixed costs for customers consuming 200 units or more per month will see a bill increase. This comes with the KERC lowering the unit prices for industrial users, something they greatly appreciate.