Karnataka’s electricity supply companies’ financial health is on precarious ground. According to reports, the state ESCOMs have a total revenue deficit of more than ₹4,900 crore. Of which in 2024-25 alone, BESCOM (Bengaluru Electricity Supply Company) takes a staggering hit of ₹2,800 crore.
To enable BESCOM to operate and close the growing gap through price raising, they have formally requested that KERC provide a price adjustment. Initial reports reveal a request for an increase of ₹1 per unit, but experts expect the top-up or adjustment to potentially fall between 8 to 10 paise per unit for domestic and commercial customers.
Key Details of the Proposal
- Proposed Implementation: April 1, 2026.
- Total Revenue Gap: More than ₹4,900 crore statewide.
- Instead of the usual five-year review process, Karnataka prefers the framework of a multi-year tariff where there are annual “top-ups” in order to balance previous losses.
- The Impact: Industrial, commercial, and high-usage domestic consumers are likely to bear the brunt of this adjustment.
Public Voice: KERC to Hold Hearings from Feb 16
The ultimate decision is yet to be determined in stone. The Karnataka Electricity Regulatory Commission (KERC) will hold a string of public hearings starting February 16, 2026, in various parts of Karnataka. In these hearings, stakeholders, industry groups (such as FKCCI), and the general public can express their grievances or objections to the proposed hike.
The "Gruha Jyothi" Factor
If there’s a shift in the energy charge in a year, it will have only minimal effect on the lives of those households that use Gruha Jyothi (free power up to 200 units), most of whom will get the bulk of such expenses subsidized by the state government. But for people with excess usage or for industrial/commercial brackets, the monthly bill could go up significantly.
Industry Reaction
Business leaders also worry that the company’s back-to-back increase in fixed charges and rising energy tariffs will hinder the rehabilitation of MSMEs (Micro, Small, and Medium Enterprises) in the state. Instead of taking the cost into public hands, they argue that ESCOMs need to focus on increasing billing efficiency and lowering transmission losses.
