Double blow for consumers: Electricity, milk prices hiked! Karnataka’s Ugadi gifts?

In a fresh financial strain on consumers, the Karnataka Electricity Regulatory Commission (KERC) has ordered an electricity tariff hike just after the increase in Nandini milk prices. The revised tariff, effective from April 1, will see a rise of 36 paise per unit in 2025-26, followed by 35 paise in 2026-27 and 34 paise in 2027-28. This move is set to generate ₹8,519 crore over three years.

Also read: Karnataka hikes milk prices: Freebies on one other, is govt robbing Peter to pay Paul? 

The primary reason behind the hike is the increased electricity maintenance costs imposed by Karnataka Power Transmission Corporation Limited (KPTCL). Additionally, pension and gratuity expenses of employees from power supply and transmission companies will now be recovered from consumers.

Earlier, KPTCL had filed an application to shift the financial burden of pensions and gratuities to consumers, which was accepted by KERC. However, this issue has been contentious, with the Karnataka Chamber of Commerce and Industry (FKCCI) challenging the decision in the High Court. The court dismissed FKCCI’s plea on March 25, paving the way for the tariff revision.

Notably, when the Karnataka Electricity Board (KEB) was dismantled to form KPTCL and five Electricity Supply Companies (Escoms), the state had assured that pension liabilities would remain a government responsibility. However, a 2021 decision overturned this, leading to the present cost transfer to consumers.

With both electricity and essential commodities becoming costlier, citizens now face an increased financial burden.