No proposal to increase fixed charge in domestic power tariff, says government

The State government on Monday (March 16) clarified that there is no proposal before it to increase the fixed charge in domestic electricity tariffs.

Providing the information in the Legislative Council on behalf of Energy Minister K. J. George, Floor Leader N.S. Boseraju said that the proposal submitted for tariff revision did not include any recommendation to raise the fixed charge for domestic consumers.

Replying to a question from JD(S) member C.N. Manje Gowda, Mr. Boseraju said that any proposal for revising electricity tariffs has to be submitted at least 120 days in advance. The proposal submitted on November 29, 2025, did not contain any reference to increasing the fixed charge for domestic consumers, he said.

Mr. Boseraju also informed the House that the six power distribution companies (Escoms) in the State together incurred losses of ₹4,516 crore during 2024–25. Of this, Bangalore Electricity Supply Company Limited (Bescom) alone accounted for a loss of ₹2,802 crore.

He said the matter is currently before the Karnataka Electricity Regulatory Commission (KERC), and the government is awaiting its decision on measures to offset the losses.

Bescom’s losses

Explaining the reasons for Bescom’s losses, Mr. Boseraju said the company charges nearly ₹1 less per unit compared to other Escoms. While KERC had fixed the tariff at ₹9.54 per unit, Bescom collected only ₹8.59 per unit from its consumers, leading to a revenue shortfall of ₹1,678 crore.

In addition, while KERC had approved a power purchase cost of ₹27,190 crore, Bescom’s actual expenditure stood at ₹27,895 crore, resulting in an additional burden of ₹706 crore, he said.

Mr. Boseraju also said that under the State government’s Gruha Jyothi scheme, ₹25,076 crore had been spent so far to provide free electricity benefits to about 1.65 crore households across Karnataka.