After metro and Cauvery, power bills next: Karnataka braces for another major tariff hike

With electricity supply companies facing massive losses, the Karnataka Electricity Regulatory Commission (KERC) is considering an additional power tariff hike from April 1, after public hearings across the state starting February 16.

After the recent hike in Bengaluru Metro fares and the proposal to revise Cauvery water charges, Karnataka residents may soon have to prepare for another financial burden, a possible increase in electricity tariffs.

State-run electricity supply companies, including BESCOM, have submitted their annual performance and financial reports to the Karnataka Electricity Regulatory Commission (KERC) for the financial year 2024-25. Based on these submissions, KERC has initiated the process for reviewing power tariff revisions, citing heavy financial losses faced by all electricity distribution companies across the state.

According to official estimates, Karnataka’s power supply companies are together running at a loss of nearly ₹4,500 crore. Among them, BESCOM alone has reportedly incurred losses exceeding ₹2,800 crore during the 2024-25 financial year. The companies have urged KERC to allow an additional tariff hike to compensate for revenue shortfalls and stabilize operations.

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While electricity tariffs for the financial years 2025-26, 2026-27, and 2027-28 have already been fixed, the companies are now seeking a further upward revision to offset mounting losses. KERC is actively considering this request and has announced a statewide public consultation process.

From February 16 to February 27, KERC will conduct public hearings across different regions of Karnataka to gather feedback, objections, and suggestions from consumers and stakeholders. These hearings will play a crucial role in shaping the final decision on whether an additional tariff increase will be approved.

Following the completion of the consultation process, the regulatory commission is expected to take a final call, with any approved tariff hike likely to come into effect from April 1.

As Bengaluru and other parts of Karnataka already face increased expenses due to higher transport and water charges, the possibility of a power tariff hike has raised fresh concerns among residents about the growing cost of essential services.