Government Paid Gruha Jyothi Subsidy To ESCOMs In Advance, Says Karnataka Energy Minister

The Karnataka government has reaffirmed that the subsidy for its flagship Gruha Jyothi scheme is being paid in advance to ESCOMs, with no intention of recovering this amount from consumers, Energy Minister KJ George said on Monday.

"There is a misconception that Electricity Supply Companies have appealed to the Karnataka Electricity Regulatory Commission to recover the Gruha Jyothi subsidy from consumers if the government does not pay it in advance. The government has no such plan," he stated.

The Minister clarified that when the Gruha Jyothi scheme was announced, the government committed to providing free electricity of up to 200 units for households. It was also assured that the subsidy would be entirely covered by the government.

"Accordingly, funds have been allocated in the budget. Since the scheme's implementation (from August 2023 to February 2025), the Gruha Jyothi subsidy has been paid in advance to all ESCOMs," he was quoted as saying in a statement issued by the Minister's Office.

Addressing concerns regarding regulatory provisions, the Minister stated, "As per the KERC (Subsidy Payment Mechanism) Rules, 2008, ESCOMs are permitted to collect subsidies from consumers if the state government fails to pay in advance. This is a general rule. The same has been misinterpreted."