News Karnataka
Saturday, April 20 2024

Karnataka slashes Power Tariff by 110 paise/unit

Electricity Rates
Photo Credit : India Today

Residents and businesses in Karnataka have cause for celebration as the Karnataka State Electricity Regulatory Commission (KERC) has announced a significant reduction in electricity rates, marking the first decrease in over fifteen years. Effective immediately, starting April 1, the updated rates have been implemented to alleviate the financial burden on consumers and support economic growth.

A notable departure from the previous system is the substantial decrease in electricity tariffs for consumers. Notably, the previous slab system for domestic consumption charges has been eliminated. Under the new arrangement, regardless of the units consumed, consumers will be charged a fixed rate of Rs. 5.90 per unit, ensuring uniformity in household electricity rates across all distribution companies (Escoms).

For households using over 100 units, the rate has been reduced to Rs. 5.90 per unit from the previous Rs. 7.00 per unit. Similarly, for those consuming less than 100 units, the rate will see a slight increase from Rs. 4.75 to Rs. 5.90 per unit. However, it’s worth noting that 97 per cent of consumers falling within this category are already enrolled in the Gruha Jyoti Yojana, thereby shielding them from the impact of the price adjustment.

Commercial users, including LT-connected establishments such as hospitals and educational institutes, are also poised to benefit from the revised rates. Previously set at Rs. 7.75 per unit, these entities will now pay Rs. 7.25 per unit, providing much-needed relief to businesses.

Moreover, the complex slab system for demand-based charging in commercial connections has been abolished, simplifying the tariff structure and easing the financial burden on commercial users. The previous rate of Rs. 8.50 per unit has been reduced to Rs. 8, further supporting businesses.

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