The Karnataka Electricity Regulatory Commission (KERC) announced a significant reduction in electricity tariffs on Thursday, providing much-needed relief to commercial, industrial, educational, and hospital consumers. This adjustment is part of the approved Retail Supply Tariff for the fiscal years 2025-26, 2026-27, and 2027-28.
KERC stated that the tariff rationalisation aims to reduce cross-subsidisation across different categories, notably benefiting High-Tension (HT) and Low-Tension (LT) commercial and industrial consumers.
Tariff reductions across categories
LT domestic lighting: Energy charges will be reduced by 10 paise per unit in 2025-26 and by five paise per unit in 2027-28.
LT domestic solar consumers: Consumers with rooftop solar installations (up to 10 kW) will receive a rebate of Rs 25 per kW on fixed charges.
LT industrial consumers: Energy charges will be reduced by 160 paise per unit in 2025-26.
HT commercial consumers: Energy charges will see a substantial reduction of 205 paise per unit in 2025-26.
HT industrial consumers: A reduction of 30 paise per unit in 2025-26 has been approved.
HT hospitals and educational institutions: Energy charges will be reduced by 90 paise per unit.
Meanwhile, fixed charges for domestic consumers will be set at Rs 145 per kW in 2025-26, increasing by Rs 5 per kW in 2026-27 and by Rs 10 per kW in 2027-28.
The KERC also disclosed the approved Annual Revenue Requirement (ARR) for the Karnataka Power Transmission Corporation Limited (KPTCL) for the three-year control period:
Rs 7,067.44 crore for FY 2025-26
Rs 7,360.25 crore for FY 2026-27
Rs 8,075.52 crore for FY 2027-28
(With PTI inputs)