Mescom proposes electricity tariff hike in 2025

Mescom proposes electricity tariff hike in 2025

mangaloretoday.com

Mangaluru, January 09, 2025: Mescom has proposed a tariff increase of ₹0.70 per unit for the fiscal year 2025-26 in its submission to the Karnataka Electricity Regulatory Commission (KERC). If approved, consumers can expect higher electricity bills in the coming year.

According to Mescom, the current tariff rates are insufficient to meet operational costs and ensure sustainable revenue management. The public has been invited to submit objections to the proposed hike.

Presently, the electricity supply cost is ₹9.23 per unit, while the consumer tariff is ₹8.53 per unit, resulting in a ₹0.70 per unit shortfall. Mescom reported revenue of ₹5,924.73 crore for the 2023-24 fiscal year against an expenditure of ₹6,310.39 crore, leaving a deficit of ₹367.66 crore. For 2025-26, the estimated revenue is ₹5,850.81 crore, but the required expenditure is projected at ₹5,961.63 crore, leading to a deficit of ₹110.82 crore.

For the first time, Mescom has submitted a multi-year tariff revision proposal to KERC. The plan outlines a hike of ₹0.70 per unit for 2025-26, followed by increases of ₹0.37 per unit for 2026-27 and ₹0.54 per unit for 2027-28.

Jayakumar R., Managing Director of Mescom, stated, “An increase in electricity tariff is inevitable. Mescom has submitted a proposal in this regard to KERC.”