Power tariff hike: KERC orders 36 paise increase per unit from April 1

In a move that adds to the financial burden of consumers, the Karnataka Electricity Regulatory Commission (KERC) has announced a 36 paise per unit hike in power tariffs, effective April 1, 2025. The increase is part of a phased plan to recover ₹8,519 crore over the next three years to cover pension and gratuity expenses for power transmission and ESCOM employees.

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As per the new directive, electricity charges will rise by 36 paise in 2025-26, followed by 35 paise in 2026-27, and another 34 paise in 2027-28. This step is expected to significantly impact households, businesses, and educational institutions already grappling with rising costs.

The hike aims to address pension and gratuity arrears, which currently stand at ₹4,659 crore. Educational institutions have also been highlighted for retaining gratuity dues, further adding to the financial burden on the power sector.

Consumers across the state have expressed concerns over the rising electricity costs, calling it an added strain amidst inflation. Meanwhile, power sector officials justify the hike as necessary to sustain financial stability and ensure uninterrupted services.

With the new rates set to be implemented from April 1, Karnataka residents must brace for higher electricity bills in the coming years.