Bescom proposes tariff hike of 67 paise per unit for 2025-26

Bescom had proposed a hike of 49 paise for FY 2024-25, but KERC had approved a reduction in energy charges for the year across various categories.

With demand surging in Bengaluru and in the agriculture sector, the Bangalore Electricity Supply Company (Bescom) has proposed a tariff hike of 67 paise per unit for FY 2025-26 in its first Multi-Year Tariff (MYT) application filed before the Karnataka Electricity Regulatory Commission (KERC).  

The power utility has also proposed a steep tariff hike of 75 paise per unit for 2026-27 and 91 paise hike for 2027-28. According to sources in Bescom, the tariff hike has been proposed based on the projected surge in demand in the upcoming years.

“Besides domestic consumption, irrigation pump (IP) sets are our biggest consumers, and the demand might go up any time in both sectors. Hence, we have proposed an average increase of these amounts for the next three years,” the source said. 

Bescom had proposed a hike of 49 paise for FY 2024-25, but KERC had approved a reduction in energy charges for the year across various categories. “They have sought a considerable hike this year. We are yet to examine the reasons for the proposed hike, and we will publish the proposal in the public domain after two weeks so that stakeholders can put forth their views during the public hearing,” said a senior official from KERC. 

With the government’s flagship Gruha Jyothi scheme providing free power (up to 200 units) for over 2 crore domestic consumers, the hike in tariff is likely to affect only HT consumers.

Although KERC had planned to implement the MYT system for the year 2024-25 itself, the idea was dropped following opposition from multiple stakeholders, including commercial and industrial consumers. They had argued that with constantly changing Fuel and Power Purchase Cost Adjustment (FPPCA), the MYT system would not help in any way. 

The escoms had also sought more time for the implementation of MYT as 2023-24 was a power deficit year when projections were difficult. This year, all escoms have submitted MYT applications, the official from KERC said.