Key Points
Karnataka commits to free 200 units electricity without consumer cost
ESCOMs receive advance subsidy payments
Regulatory provisions clarified by Energy Ministry
Scheme covers period from August 2023 to February 2025
Energy Minister K J George provided this clarification after a departmental meeting at Belaku Bhavana on Monday.
"There is a misconception that ESCOMs have appealed to the Karnataka Electricity Regulatory Commission (KERC) to recover the Gruha Jyothi subsidy from consumers if the government does not pay it in advance. The government has no such plan," he said.
"When the Gruha Jyothi scheme was announced, the government committed to providing free electricity up to 200 units for households. It was also assured that the subsidy would be entirely covered by the government. Accordingly, funds have been allocated in the budget. Since the scheme's implementation (from August 2023 to February 2025), the Gruha Jyothi subsidy has been paid in advance to all ESCOMs " he explained.
Addressing concerns regarding regulatory provisions, the Minister added, "As per the KERC (Subsidy Payment Mechanism) Rules, 2008, ESCOMs are permitted to collect subsidies from consumers if the state government fails to pay in advance. This is a general rule. The same has been misinterpreted. "
Chief Minister Siddaramaiah had announced the provision of 200 units of free electricity, a promise made by the Congress before the 2023 Assembly elections.
In December 2024, the ESCOMs submitted a proposal to the Karnataka Electricity Regulatory Commission (KERC) seeking an increase in electricity rates for the next three years.
KERC has initiated the rate revision process after issuing a notification for the Multi-Year Tariff (MYT) system. Under this system, ESCOMs have proposed an increase of 67 to 70 paise per unit of electricity for the year 2025-26, 70 to 75 paise for 2026-27, and 85 to 90 paise per unit for 2027-28. If KERC approves the proposal, the burden of the price hike will fall on consumers.
