Karnataka Power Tariff Hike: Consumers To Pay 36 Paise More Per Unit From April 1

Electricity consumers in Karnataka will have to pay an additional 36 paise per unit starting from April 1 as a surcharge, following a recent directive. The move comes after the Karnataka Electricity Regulatory Commission allowed energy supply companies or ESCOMs to recover the government's share of pension and gratuity contributions from consumers.

The P and G contributions will be revised for financial years 2026-27 and 2027-28, with consumers paying 35 paise and 34 paise per unit, respectively.

"In accordance with the Government of Karnataka's order, the Commission allows ESCOMs to recover the government’s portion of pension and gratuity contributions uniformly from their consumers as 'P&G Surcharge (Government Portion)," stated the KERC order dated March 18.

"The aforesaid levy shall come into effect from April 1, 2025, and remain in force for the entire duration of the control period, commencing from fiscal 2025-26 and concluding in fiscal 2027-28, or as decided by the government from time to time," it added.

State BJP president B Y Vijayendra criticised the move, stating that since the 'anti-people' Congress government came to power in Karnataka, the only guarantee it has implemented is 'price hikes'.

"People of the state must be cautious about the 36 paise increase in power tariffs, as the current government is a pickpocket government. On one hand, they claim to be implementing guarantee (populist) schemes, while on the other, they are burdening the people with price hikes and taking back the money," he alleged.

Energy Minister K J George clarified that the pension and gratuity issues of Karnataka Power Transmission Corporation Ltd. and ESCOM staff have been undertaken in accordance with a Karnataka High Court order issued in March 2024, and following this, the KERC has implemented a tariff hike.

"Our government has not increased the electricity rates by 36 paise per unit. The hike follows the Karnataka High Court's order, allowing the KPTCL and ESCOM staff to recover customer pension and gratuity payments. Based on this, the KERC has issued the directive. As a result, for the financial year 2025-26, the rate has been raised by 36 paise per unit," George's office said in a statement quoting him.

Noting that after the dissolution of the Karnataka Electricity Board and the formation of KPCL and five ESCOMs, the then BJP government, for the first time in March 2022 submitted a proposal to the KERC, requesting approval to recover pension and gratuity contributions from customers, he said,

"However, KERC did not approve the proposal at that time. Following the High Court's order, KERC has (now) issued a new directive," he said.