BESCOM proposes multi-year power tariff hike amid government assurances

Bangalore Electricity Supply Commission (BESCOM) has submitted a proposal to the Karnataka Electricity Regulatory Commission (KERC) seeking a phased power tariff hike over the next three years. If approved, the hike would see electricity costs rise by 67 paise per unit in 2025-26, 74 paise in 2026-27, and 91 paise in 2027-28. A similar proposal for the 2024-25 fiscal year was earlier rejected by the KERC.

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Energy Minister K.J. George sought to reassure the public, stating that the increase would not burden the "common man." He highlighted the state government’s existing scheme of providing 200 units of free electricity, ensuring that beneficiaries of this initiative remain unaffected by the proposed tariff revision.

However, individuals not covered under the free electricity scheme would bear the cost of the hike, potentially impacting small businesses and households consuming electricity beyond the subsidized threshold.

Critics have pointed out that the proposed hike comes amid a series of cost escalations under the current government, including increases in milk prices, stamp duty, cess, and fuel costs. This would also mark the second electricity tariff adjustment since the Congress-led Siddaramaiah government assumed office, with an earlier hike implemented soon after it came to power.

The proposal has drawn mixed reactions, with concerns over its potential impact on non-subsidized consumers despite the government’s assurances. KERC is expected to review and decide on the proposal in the coming months.