KERC slashes power tariffs after 16 years
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KERC slashes power tariffs after 16 years

February 29, 2024

Domestic, industrial consumers to benefit from reduction ahead of Lok Sabha Elections

Bengaluru: In a major relief for consumers across Karnataka, the Karnataka Electricity Regulatory Commission (KERC) announced a significant reduction in electricity tariffs for consumers using more than 100 units per month. This decision marks the first reduction in tariffs in 16 years, offering substantial savings to households and businesses.

The KERC’s decision entails a reduction of 110 paise per unit for the upcoming fiscal year 2024-25, countering the proposed hikes ranging from 49 to 163 paise per unit by Electric Supply Companies (ESComs). This move has ignited discussions within political circles, with speculations linking the tariff reduction to the upcoming Lok Sabha elections.

The new tariff is likely to reduce the monthly electricity bill of an average household of 3-4 persons by Rs. 250 to Rs. 300, according to sources. Contrary to the collective demand of ESComs to increase tariff at 66 paise per unit, KERC has ordered a reduction in tariff — after a hiatus of 16 years — ranging from 110 paise per unit (domestic lighting) to Rs. 10 per KVA consumed by Industries and hospitals.

With this, domestic consumers will pay Rs. 5.90 per unit instead of Rs. 7 from April 1. There will be no changes for those getting zero bills under the Gruha Jyothi scheme.

The KERC order, which was released on its website on Wednesday, stated, “LT domestic lighting energy charges reduced by 110 paise per unit for consumption above 100 units.”

The last time the tariff was reduced was in 2008 when KERC cut it by 50 paise. For 2023-24, KERC had increased the power tariff by 70 paise per unit.

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All domestic categories, including the subsidised Bhagya Jyothi and Kuteera Jyothi, now come under only one – LT-1 – category. Domestic consumers with AEH and only lighting connections, who were paying Rs. 4.50 per unit for up to 100 units and Rs. 7 or Rs. 9 per unit beyond 100 units, will now be charged only Rs. 5.90 per unit in only slab.

However, the reduction in tariff may not impact consumers who are covered under the State Government’s guarantee scheme ‘Gruha Jyothi’ as they will either be handed over zero bill or discounted bill. But those consuming more than 200 units per month will benefit in a big way according to Energy Department officials.

Further, KERC has reduced tariff for HT commercial consumers by Rs. 1.25 paise per unit. This apart, their demand charges have also been reduced by Rs. 10 per KVA. The industrial tariff has also been reduced by 50 paise per unit along with the reduction in demand charges to the tune of Rs. 10 per KVA.


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