KERC hikes power tariff for commercial and industrial users

Bengaluru: In a move that has triggered sharp reactions from trade and industry bodies, the Karnataka Electricity Regulatory Commission (KERC) has approved a power tariff hike for commercial and industrial consumers for the financial year 2025–26.

The decision comes weeks after a public consultation held on February 20, where stakeholders had strongly opposed any revision in electricity charges. Following the meeting, the Commission had reportedly assured participants that tariffs would not be increased. However, the latest notification announcing revised rates has led to accusations of a “U-turn” and sparked anger among entrepreneurs.

According to the revised structure, LT-3(A) commercial tariff has been increased from ₹7 per unit to ₹7.10 per unit. For LT-5 industrial consumers, the rate has been raised steeply from ₹4.50 to ₹5.20 per unit. Under the HT-2(A) category, applicable to metro, railways and similar services, the tariff has gone up from ₹6.60 to ₹6.70 per unit. Meanwhile, HT-2(B) consumers, including complexes, theatres and hotels, will now pay ₹6.90 per unit as against the earlier ₹5.95.

Industry associations argue that the hike, particularly for LT-5 and HT-2(B) categories, will significantly increase operational costs at a time when businesses are already grappling with input price volatility and competitive pressures from neighbouring states.

Union Minister Pralhad Joshi lashed out at the state government over the revision, accusing it of repeatedly burdening citizens and enterprises with higher charges.

He alleged that the government has increased the prices of over 50 goods and services so far and termed the latest power tariff hike as another blow to Karnataka’s industrial climate.

Joshi further claimed that such decisions could drive industries out of the state, affecting employment and investment prospects.

He also raised concerns over the state’s financial health, alleging mounting debt and lack of fiscal discipline.

While the state government has maintained that tariff revisions are based on regulatory requirements and cost assessments, the backlash from the business community suggests the issue may escalate politically in the coming days.