The Bangalore Electricity Supply Company (Bescom) has proposed a tariff hike of 67 paise per unit for the year 2025-26 in its first Multi-Year Tariff (MYT) application submitted to the Karnataka Electricity Regulatory Commission (KERC).
According to The Hindu, the proposal includes further hikes of 75 paise per unit for 2026-27 and 91 paise per unit for 2027-28, citing an anticipated surge in electricity demand across Bengaluru and the agricultural sector.
In the last financial year, Bescom proposed a hike of 49 paise per unit for FY 2024-25, but the KERC instead approved a reduction in energy charges across various categories.
Although KERC had initially planned to introduce the MYT system for 2024-25, it was deferred following objections from stakeholders, including commercial and industrial consumers, who argued that fluctuating Fuel and Power Purchase Cost Adjustment (FPPCA) charges would render the system ineffective. Bescom and other electricity supply companies (escoms) had also requested additional time, citing challenges in making projections during the power-deficit year of 2023-24.
In October, KERC approved an increase in cross-subsidy surcharges for 2024-25 as proposed by the escoms. However, Bescom recently issued a circular withdrawing the October 15 order after the High Court stayed its implementation.