New Delhi: A month after electricity tariffs were increased by 10 to 90 paise per unit, Bengalureans will have to shell out more for power consumption
from May 1.
The Karnataka Electricity Regulatory Commission (KERC) has allowed Bangalore Electricity Supply Company Limited (BESCOM) to raise per unit price by 56 paise and recover Rs 2,068 crore in in revenue gap for 2024-25. It will be collected in a staggered manner over the next year and not immediately as an exact sum.
Consumers to pay extra charges in instalments
The consumers will pay the extra amount for the electricity they used in 2024-25 and will happen in instalments during FY27. The charges will appear in bills as “FY25 true-up charges”.
“BESCOM shall calculate, for each of the active consumers of FY 2024-25 the amount to be recovered based on their actual energy consumption during FY 2024-25. Such amount shall be recovered during FY 2026-27 in equal monthly instalments, to be called as ‘FY25 True up Charges’, commencing from the first meter reading date falling on or after 1 May 2026 and concluding with the reading date ending on 30 April 2027,” the order read.
Increase due to mismatch in costs
The increase in bill is the result of mismatch between estimated and actual costs faced by companies. These mismatches happen due to multiple factors and when such gaps arise, the companies are allowed to recover the shortfall as “true-up” charges.
“Each year, electricity supply companies function based on estimated costs and revenues approved by the KERC through the annual tariff order. However, actual performance may vary from these estimates due to changes in electricity usage patterns, tariff adjustments, input costs, and other operational reasons,” Deccan Herald quoted an official as saying.
Increase not limited to Bengaluru
The increase is not limited to Bengaluru but will be felt by consumers from other parts of the state too. Chamundeshwari Electricity Supply Corporation Limited (CESC) has also been permitted to recover a deficit. CESC, operates in several parts of Karnataka, will charge an additional 15 paise per unit as the revenue gap tops Rs 121 crore.
While the increase is not that big but it comes at the top of an earlier increase in March when the price of one unit was increased by nearly Re 1.
How much extra will you be paying
For a resident in Bengaluru using 300-400 units the monthly extra expenditure will be anywhere from Rs 200-300. While the amount is small, the staggered payment will persist throughout the financial year.
