Bangalore Electricity Supply Company takes Rs 2.8kcr hit, consumers to pay more for next 1 year

Bengaluru: With Bangalore Electricity Supply Company (Bescom) incurring ₹2,803 crore losses during 2024-25 due to rising power cost, power consumers across its eight districts will have to pay 56 paise more per unit for a one-year period starting May 2026.The move, approved by Karnataka Electricity Regulatory Commission, will further strain household budgets.Sources told TOI the charges are pegged to consumers' actual electricity usage in 2024-25. The revised tariff will come into effect from the first meter reading after May 1, 2026, and continue until April 30, 2027, ensuring the financial burden is spread out evenly over a year.Officials clarified the revision will not impact houses covered under Gruha Jyothi scheme receiving zero-payment bills. Consumers exceeding their monthly free unit limit will have to pay the revised charges along with their regular bills.Sources said the order was based on Bescom's annual performance review, submitted in Nov 2025. It said financial strain was driven by rising power purchase costs and surges in demand. Bescom argued that a major contributor to the shortfall was the restructuring of domestic tariffs."While a uniform rate of ₹5.90 per unit was introduced replacing the slab system, it led to revenue loss from high-consuming households. Nearly 65% domestic consumers fall in the above-100-unit-consumption category. Reduction from ₹7 to ₹5.90 per unit led to losses of ₹1,213 crore, accounting for 43% of the total deficit," Bescom informed KERC.The situation was aggravated by the decision to reduce energy charges for industrial and commercial consumers by an average of 75 paise per unit. Plus, poor rainfall during 2024-25 led to a surge in electricity consumption for irrigation pumps, exceeding approved levels by 2,500 million units.As this segment is heavily subsidised, the increased usage deepened Bescom's financial burden. "Increased allocation of thermal energy — more expensive than hydro and renewable sources — too impacted revenues," a Bescom engineer said.KERC has said the deficit must be recovered strictly from consumers active during 2024-25.Mangaluru, Hubballi, Kalaburagi consumers to get refundsWhile Bescom consumers will have to pay more, their counterparts in Mangaluru, Hubballi and Kalaburagi jurisdictions are set to receive marginal refunds. The refunds, calculated based on each consumer’s actual electricity consumption during 2024–25, follow directions from the Karnataka Electricity Regulatory Commission (KERC) to Escoms to return excess charges collected during the year.Consumers under Mescom (Mangaluru) will receive a refund of 9 paise per unit, while those under Hescom (Hubballi) and Gescom (Kalaburagi) will get 10 paise per unit each. However, consumers in the Mysuru (Chescom) jurisdiction will have to pay an additional 15 paise per unit, as Chescom too has reported a revenue deficit.