Karnataka Slashes Electricity Tariff Ahead Of Polls: Check New Rates

Ahead of the Lok Sabha polls, Karnataka Electricity Regulatory Commission (KERC) is set to slash electricity tariffs for domestic, commercial, and industrial consumers.

For consumers using more than 100 units, the rate has been reduced by Rs 1 and 10 paise per unit. Similarly, commercial users will benefit from a reduction of 1 rupee and 25 paise per unit. Hospitals and educational institutions will see a decrease of 40 paise per unit, while private water supply users will enjoy a significant reduction of Rs 2 per unit.

These revised rates will come into effect from March 1.

• The marginal surplus identified for the fiscal year 2024-25 has been allocated towards tariff adjustments across various tariff categories.
• For LT Domestic Lighting, energy charges have been decreased by 110 paise per unit for consumption exceeding 100 units.
• In the HT Commercial category, energy charges have been reduced by 125 paise per unit, while demand charges have been lowered by Rs. 10 per KVA.
• HT Industrial consumers will benefit from a reduction of 50 paise per unit in energy charges and a decrease of Rs 10 per KVA in demand charges.

• HT Hospital and Educational Institutions will witness a decrease of 40 paise per unit in energy charges, along with a reduction of Rs 10 per KVA in demand charges.
• The Time of the Day (ToD) tariff structure has been expanded to include a morning peak period from 6 am to 9 am., in addition to the existing evening peak period from 6.00 pm to 10.00 pm.
• The Special Incentive Scheme (SIS) will continue for the financial year 2024-25, albeit with a change in the incentive rate from Rs. 2/- per unit to Rs 1/- per unit for night consumption, while retaining the existing terms and conditions.
• Cross subsidization levels have been reduced, and an Optional Self-reading of meters has been introduced for all LT installations.
• With the introduction of a single slab for energy charges, LT consumers now have the option to avail multiple connections to their premises.
• To ensure sufficient recovery of fixed costs incurred by the ESCOMs, the Karnataka Electricity Regulatory Commission (KERC) has opted for a marginal increase in billing demand for High Tension (HT)/ Fuel Cost (FC) for select Low Tension (LT) Consumers, achieved by reducing energy charges.
• In a bid to promote the use of electric vehicles, the energy charges for EV charging stations will remain at a reduced rate of Rs. 4.50 per unit.
• To incentivize the establishment of Data Centers in the state, industrial tariff rates will be maintained for such facilities.
• With the reduction in tariff for LT Industries, the rebate of 50 paise per unit for Micro and Small industries has been discontinued.
• Urban and rural categories have been amalgamated into a single category as per the previous order. Consequently, the rebate of 30 paise per unit is now applicable only for LT commercial, LT Industries, and LT Private Hospitals & Educational Institutions in Village Panchayat Areas.
• The green tariff of 50 paise per unit, aimed at encouraging the procurement and utilization of energy from Renewable Energy (RE) sources, remains applicable for HT industries and HT commercial, in addition to the regular tariff.
• Concessional tariff rates for Bangalore Metro Rail Corporation Ltd. (BMRCL) and Railway traction are sustained.
• As part of tariff rationalization, a single slab for energy charges has been introduced for all consumer categories.
• These revised tariff measures will come into effect from the 1st of April, 2024.