According to the annual performance review (APR) submissions, Bescom alone has reported a revenue gap of ₹2,802.82 crore, the highest among all Escoms.
| Photo Credit: MURALI KUMAR K
While Karnataka’s power utilities press for regulatory approval to bridge a cumulative revenue gap of nearly ₹4,900 crore, industry body Federation of Karnataka Chambers of Commerce and Industry (FKCCI) has opposed any electricity tariff hike, warning that higher power costs would severely affect industries and factories in the State.
This comes amid filings by the State’s five electricity supply companies (ESCOMs) before the Karnataka Electricity Regulatory Commission (KERC), seeking truing-up of their accounts for 2024–25, and flagging a sharp mismatch between approved costs and actual expenditure.
APR submissions
According to the annual performance review (APR) submissions, Bescom alone has reported a revenue gap of ₹2,802.82 crore, the highest among all Escoms.
The Escoms have attributed the shortfall to higher-than-estimated power purchase costs, increased interest and finance charges, rising operation and maintenance expenditure, and lower-than-expected revenue realisation in several areas. They have argued before the regulator that a tariff revision is required to maintain financial viability.
However, Bescom’s own petition to KERC does not spell out the quantum of tariff hike being sought. In their prayer, the utility has only requested approval for truing-up of its Financial Year (FY) 2025 accounts based on audited figures, without proposing any per-unit increase or consumer-category-wise tariff revision.
As per Bescom’s submission, its net aggregate revenue requirement (ARR) for FY 2025 stood at ₹34,708.97 crore against revenue from sale of power of ₹31,905.88 crore, resulting in a deficit of ₹2,802.82 crore. While Bescom has indicated an average cost of supply of ₹9.35 per unit, it has stopped short of translating the revenue gap into a specific tariff proposal, leaving the determination of any increase to the Commission.
Lower realisation
Bescom has attributed the deficit primarily to lower tariff realisation, achieving an average of ₹8.59 per unit against the approved ₹9.54, higher power purchase costs, increased finance expenses, and a decline in other income. At the same time, it has claimed savings of ₹110.05 crore due to reduction in distribution losses below the levels approved by KERC.
KERC officials said that the proposals for a hike are under discussion, but hikes are expected to take place shortly.
Published – January 23, 2026 10:30 am IST
