Electricity rates hiked before Karnataka election results unfold; highest in 10 years

Bengaluru: Residents of Karnataka will now experience increased electricity costs as the Karnataka Electricity Regulatory Commission (KERC) approved a rate increase of 70 paisa per unit to close the revenue gap. In Karnataka, electricity costs have jumped four times in the last two years.

According to a press release from KERC, the commission has approved an overall Annual Revenue Requirement (ARR) of Rs 58,109.95 crore as opposed to the Rs 62,133.47 crore requested by the Electricity Supply Companies (ESCOMs) in their tariff proposals. The increased fees will take effect on April 1, 2023.
ESCOMs had initially requested a 139 paisa per unit increase, but KERC only allowed a 70 paisa increase. The remaining 13 paisa will be recovered as energy charges out of the additional 70 rupees, enabling 57 paisa to be recovered through fixed charges.

Additionally, KERC expanded the Low Tension (LT) commercial installations with a sanctioned load of 50 kW and above, lowering the energy rates for businesses and industries from Rs 6 per unit to Rs 5. The energy rates for EV charging stations have been lowered from the previous rate of Rs. 5.00 per unit to Rs. 4.50 in an effort to promote the use of electric vehicles. For one more year, the 50 paisa per unit subsidy for small and micro businesses will be offered.

The tariff hike has come when a few political parties promised voters 200 units of free power a month.

In a few hours, the election fates of prominent figures will be revealed, including chief minister Basavaraj Bommai of the BJP, Siddaramaiah and DK Shivakumar of the Congress, and HD Kumaraswamy of the JD(S).

The governing Bharatiya Janata Party (BJP) is seeking to end a 38-year poll jinx where voters have never elected the party in power, therefore the stakes are high. Meanwhile, Congress is aiming for a morale-boosting victory to give it the space and momentum it needs to establish itself as the primary opponent in the Lok Sabha elections of 2024.