Karnataka Revises Electricity Tariffs for Farmers, Businesses, and Industries

Electricity tariffs in Karnataka have been revised for several consumer categories after the state regulator approved a request from distribution companies. The changes, introduced for the financial year 2025–26, reduce power charges for agricultural users while increasing tariffs for certain commercial and industrial consumers in order to address financial gaps faced by utilities.

The decision was taken by the Karnataka Electricity Regulatory Commission (KERC) after it accepted a review petition submitted by the state’s electricity distribution companies. Following the approval, tariff structures were modified across different consumer categories including agriculture, commercial establishments, and industries.

Under the revised structure, farmers using agricultural pump sets in the LT-4(a) category will benefit from lower electricity charges. The revision is intended to protect farmers from rising power costs and ensure continued support for agricultural activities that depend heavily on electricity for irrigation.

At the same time, tariffs have been increased for some commercial and industrial consumers. The hike applies to categories such as LT-3(a), LT-5, HT-2(a), and HT-2(b), which mainly include businesses and large industrial power users. The adjustment is expected to help distribution companies recover revenue and address subsidy gaps in the electricity sector.

The decision has drawn criticism from industry and trade groups in the state. They argue that the financial shortfall created by subsidized electricity for certain sectors should be covered by the state government rather than being shifted onto commercial and industrial users through higher tariffs.

The tariff revision reflects the continuing challenge faced by power utilities in balancing subsidies, financial sustainability, and affordable electricity supply. Regulators often adjust tariffs to ensure utilities can maintain operations while still supporting sectors such as agriculture that rely heavily on subsidized power.