Karnataka raises electricity prices by Rs 2.89 per unit, starting July 1

Chief Minister Siddaramaiah announced the new price increase on Monday along with the Griha Jyoti scheme that will provide eligible households up to 200 units of free electricity

The government of Karnataka has increased the electricity prices across the state by Rs 2.89 per unit for those using more than 200 units per month. This has been done to accommodate the Griha Jyoti scheme, which promises a free supply of power to eligible households for up to 200 units.

The Siddaramaiah-led government announced the scheme, its implementation, and the price hikes on Monday to the media.

The new prices will be implemented July 1 onwards.

Before the assembly elections, the Congress party had promised a free electricity scheme without any conditions.

The announcement has roused many criticisms from the Opposition, who staged protests in Bengaluru, Chikkaballapura, Mysuru, and Davangere according to a report by the Economic Times.

 

This announcement comes after the raise in electricity tariffs by 70 paisa per unit in May. Electricity Supply Companies (ESCOMs), had suggested a 16.38 per cent increase (139 paisa per unit) in their tariff proposal in 2022 to cover a Rs 8,951 crore revenue deficit.

However, the Karnataka Electricity Regulatory Commission (KERC) put a cap at 70 paisa per unit hike. The Hindu reported that the 8.31 per cent increase was expected to bridge approximately Rs 4,457 crore revenue gap.

The Griha Jyoti Scheme is available for eligible households, who can apply through the Seva Sindhu portal. The scheme will take effect in July, the same time as the price hikes.