Bengaluru Power Bills To Rise As Supply Company Gets Nod To Recover Deficit

Electricity consumers in Bengaluru are set to face a moderate increase in power bills after the Karnataka Electricity Regulatory Commission (KERC) approved a revenue deficit recovery plan for Bangalore Electricity Supply Company (BESCOM) as part of its Annual Performance Review order.

The regulator, in its detailed order on BESCOM's performance for FY 2024-25, has cleared a net Aggregate Revenue Requirement (ARR) of Rs 34,087.94 crore and permitted the utility to recover its revenue gap through a structured mechanism beginning FY 2026-27.

Deficit Recovery Through "True-up Charges"

BESCOM reported a revenue shortfall of over Rs 2,000 crore for the year. To cover this, KERC has permitted recovery in 12 monthly instalments under what is being called "FY25 True-up Charges".

So instead of a one-time hike, consumers will see small additional amounts added to their monthly bills over a period of time.

Tariff Impact on Consumers

The order comes alongside a previously approved tariff hike of 56 paise per unit for BESCOM consumers.

Combined with the true-up recovery, this is expected to result in a moderate increase in electricity bills across Bengaluru, rather than a sudden one-time spike.

Spending and checks

BESCOM also reported capital expenditure of Rs 3,164.79 crore, which was higher than what had been approved earlier.

After adjustments, KERC carried out prudence checks and allowed most of the expenditure, while flagging minor disallowances and directing tighter project evaluation in future.

While Bengaluru faces an increase due to BESCOM's deficit, other electricity supply companies in Karnataka that reported profits have been granted tariff reductions, as part of a performance-linked regulatory approach.