Karnataka Power Tariff Hike: Implications and Political Reactions

Electricity consumers in Karnataka are subject to a 36 paise per unit surcharge starting April 2025, as ESCOMs recoup government pension and gratuity contributions. The Karnataka Electricity Regulatory Commission (KERC) approved this directive, sparking political criticism amidst rising tariffs and financial adjustments through FY 2027-28.

Consumers in Karnataka face a 36 paise per unit electricity surcharge from April 2025, following a directive by the Karnataka Electricity Regulatory Commission (KERC). This move allows energy companies to recover government pension and gratuity contributions over the control period extending to 2027-28.

The decision has sparked political debate, with state BJP president B Y Vijayendra accusing the Congress government of financial burden through price hikes. Criticism centers on perceived inconsistencies between the government's populist measures and the financial adjustments impacting consumers.

Energy Minister K J George clarified that the hike aligns with a Karnataka High Court order to address staff pension issues, stating the increase was overseen by KERC, originally proposed by a previous BJP government. The regulatory decision marks the latest shift in tariff strategy in the state.

(With inputs from agencies.)