Dear Bangaloreans, your electricity bill is going go up - here's why

For the next financial year, the Karnataka Electricity Regulatory Commission (KERC) has announced an average 35-paise-per-unit increase in electricity tariffs (2022-23). This represents an increase of 4.33 percent.

During this season of price increases, people will now have to pay more for another essential item — electricity. On Monday, the Karnataka Electricity Regulatory Commission (KERC) announced a 35-paise-per-unit increase in electricity tariffs for the next fiscal year (2022-23). This represents a 4.33 percent increase. The increase was announced on the same day that the Bruhat Bangalore Hotels Association (BBHA) met on Monday evening and recommended that hoteliers raise food prices by up to 10%.

Representational image (Source: unsplash.com)

While the BBHA has left it up to the proprietors to decide on the hike, the Commission has allowed a 5 paise per unit increase in energy prices and a 10 to 30 per HP/KWh/KVA increase in fixed charges to fund a gap of $2,159 crore. The energy supply companies (Escoms) had requested a 185 paise per unit average increase, accounting for a 23.83 percent rise in the estimated revenue deficit of ₹11,320 crore.

Last year, KERC granted a tariff rise of 30 paise per unit on average for all Escoms, representing a 3.84 percent increase over the average increase of 1.35 per unit proposed by the Escoms. The hike was announced in June of last year, in the middle of a severe second wave of the COVID-19 pandemic. Even though it took effect for power consumed from the first-meter reading date on or after April 1, the commission ordered Escoms to collect the arrears for April and May in October and November, respectively, without charging any interest.

Even though this year's tariff change comes after a milder third wave of infections, it will be a blow to customers who are already facing price increases across the board, including rising gasoline prices.