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					</table><p>The Karnataka Electricity Regulatory Commission (<a href="https://kerc.karnataka.gov.in/en" target="_blank" rel="noopener">KERC</a>) has reduced the retail electricity tariff for commercial and industrial (C&amp;I) consumers of high tension (HT) categories in the financial year (FY) 2024-25 in a bid to retain customers resorting to private power purchases.</p>
<p>The retail tariff for industrial consumers was lowered by 6.8% to ₹6.90 (~$0.083)/kWh, while the tariff for industrial consumers was reduced by 13.5% to ₹8 (~$0.096))/kWh. The revised tariff will be applicable from April 1, 2024.</p>
<p><img loading="lazy" decoding="async" class="aligncenter wp-image-64060 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/03/Screenshot-2024-03-04-150622.png" alt="Karnataka Retail Tariff" width="790" height="179" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/03/Screenshot-2024-03-04-150622.png 790w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/03/Screenshot-2024-03-04-150622-300x68.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/03/Screenshot-2024-03-04-150622-768x174.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/03/Screenshot-2024-03-04-150622-650x147.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/03/Screenshot-2024-03-04-150622-624x141.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/03/Screenshot-2024-03-04-150622-600x136.png 600w" sizes="(max-width: 790px) 100vw, 790px" /></p>
<p>KERC noted a decline in HT consumption in FY 2022. This was attributed to increased purchases for irrigation pump (IP) sets. As a result, HT consumers bore the cost, prompting tariff hikes. Consequently, many HT consumers began opting for private purchases, leading to grid defections. The reduction in the tariff aims to reverse this trend.</p>
<p><strong>Green Energy Tariff</strong></p>
<p>KERC, in its tariff order, has continued the existing green energy tariff of ₹0.50 (~$.0.006)/kWh as an additional tariff over and above the normal tariff to be paid by the HT-consumers who opt for the supply of green power.</p>
<p>The Commission had proposed separate fixed charges for open-access consumers due to the under-recovery of fixed costs incurred by distribution companies. However, stakeholders opposed this proposal, citing discrimination between two sets of consumers and the provisions of the Electricity Act, 2003.</p>
<p>Consequently, KERC decided against separate fixed charges but continued to impose an additional surcharge to ensure full fixed charge recovery from open-access consumers.</p>
<p>KERC also set a wheeling charge of ₹0.32 (~$.0.004)/kWh for Bangalore Electricity Supply Company (<a href="https://bescom.karnataka.gov.in/english" target="_blank" rel="noopener">BESCOM</a>). It also set a cross-subsidy charge of ₹0.55 (~$0.007)/kWh and ₹2.46 (~$0.029)/kWh for industrial and commercial consumers in the state, respectively.</p>
<p>The Commission had <a href="https://www.mercomindia.com/karnataka-increases-retail-tariff-%e2%82%b90-70-kwh-fy24" target="_blank" rel="noopener">increased</a> the average retail electricity tariff for all low-tension and HT categories by 8.31% FY 2023-24.</p>
<p>In January, KERC <a href="https://www.mercomindia.com/karnataka-peer-to-peer-solar-energy-trading" target="_blank" rel="noopener">released</a> a draft proposal to allow peer-to-peer solar energy trading in the state using blockchain technology whereby electricity consumers can become ‘prosumers’ by installing rooftop solar modules and selling excess power generated to consumers directly.</p>


Karnataka Lowers Retail Electricity Tariff for C&I Consumers

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