New Delhi: The electricity bills for consumers will increase from May 1 under the Bangalore Electricity Supply Company Limited (BESCOM) after an order issued by the Karnataka Electricity Regulatory Commission (KERC) on Friday. The hike comes after KERC allowed BESCOM to recover revenue deficit of Rs 2,068 crore incurred in FY 2024-25 from the consumers.

The regulator has cleared a net Aggregate Revenue Requirement (ARR) of Rs 34,087.94 crore and has permitted the recovery of the revenue gap through a structured mechanism beginning FY 2026-27.

How much will the increase be?

As per the order for every unit of electricity consumed in 2024-25, the consumers will be charged an additional 56 paise, it said.

The order said, “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.”

It further ordered that BESCOM will have to maintain a separate head of account, allocated for the purpose, to record the adjustment of the said amount to ensure full recovery of the deficit.

So instead of a one-time hike, consumers will see a small additional amount added in monthly bills over a period of time. The tariff hike, combined with the true-up recovery, will result in a moderate increase in electricity bills across Bengaluru.

CESE to also recover revenue deficit

The official source said that Chamundeshwari Electricity Supply Corporation Limited (CESC) has also recorded a revenue deficit of Rs 121.71 crore and can collect an additional 15 paisa per unit for consumption in 2024-25.

While Bengaluru faces an increase in bills due to a deficit, other electricity supply companies in Karnataka have been granted tariff reductions because of profit as part of a performance-linked regulatory approach.