Karnataka reduces power tariffs just before Lok Sabha elections

The Karnataka Electricity Regulatory Commission (KERC) has approved a significant reduction in electricity tariffs for commercial, industrial, and domestic consumers consuming more than 100 units of power a month ahead of the Lok Sabha elections. The KERC announced an early revision of tariffs for the year 2024-25, with reductions in energy and demand charges for various consumer categories.

For low-tension (LT) domestic lighting, energy charges have been reduced by 110 paise per unit for consumption above 100 units. High-tension (HT) commercial usage will see a reduction of 125 paise per unit in energy charges and Rs 10 per KVA in demand charges. Similarly, HT industrial usage will experience a reduction of 50 paise per unit in energy charges and Rs 10 per KVA in demand charges.

Hospital and educational institutions (HT) will benefit from a reduction of 40 paise per unit in charges and Rs 10 per KVA in demand charges. Private lift irrigation (HT) charges have been reduced by 200 paise per unit. Additionally, residential apartments (HT) will see a reduction in demand charges by Rs 10 per KVA.

Private hospital and educational institutions (LT) will experience a reduction of 50 paise per unit in charges, while industrial installations will benefit from a reduction of 100 paise per unit in energy charges, as per the official release.

The ESCOMs have requested approval for an annual revenue requirement of Rs 69,474.75 crore with a revenue deficit of Rs 4,863.85 crore for FY25. To cover this deficit, the ESCOMs have proposed an average increase of 66 paise per unit. The Commission has approved a total ARR of Rs 64,944.54 crore and a net revenue surplus of Rs 290.76 crore for FY2024-25.

In a bid to promote the use of electric vehicles, energy charges for EV charging stations will continue at a reduced rate of Rs 4.50 per unit. This decision aims to encourage the adoption of environmentally friendly transportation options.