Daijiworld Media Network - Bengaluru

Bengaluru, Mar 31: Karnataka residents are set to face a wave of price increases from April 1 as the new financial year begins, with higher electricity and water tariffs, rising highway tolls, and escalating costs of essential commodities, medicines, and travel expected to tighten household and business budgets across the state.

The Karnataka Electricity Regulatory Commission (KERC) is likely to approve a sharp electricity tariff revision following requests from state electricity supply companies (ESCOMs), which reported combined revenue losses of around Rs 4,900 crore in their Annual Revenue Requirement submissions.

While ESCOMs had initially proposed an average hike of 68 paise per unit to recover these losses, reports said the commission is expected to approve a lower increase of 40–45 paise per unit for most consumers, with BESCOM customers potentially facing hikes up to 55 paise per unit.

“The escalation in electricity tariffs is necessitated by record consumption across the state,” officials said. “Summer temperatures have driven residents to rely heavily on air conditioning, while rural farmers are using irrigation pumps continuously for their summer crops.”

Shortages of cooking gas have further forced households and hotels to switch to induction stoves and electric heaters, adding an estimated 400–500 MW of extra load on the state grid.

The revised rates will apply retrospectively to electricity consumed during April 2025–March 2026, with ESCOMs, including BESCOM, recovering the dues in bills issued during FY 2026-27. Commercial and industrial consumers, including industrial units, hotels, and cinema halls, are expected to bear the steepest hikes, which may ripple through production costs and prices of goods and services statewide.

Residential households using high-end appliances or large loads may see increases of 20–60 paise per unit, while lower slab households will face smaller revisions.

The delay in the official notification of the tariff hike is linked to the model code of conduct enforced due to by-elections scheduled on April 9. An official order implementing the new rates is expected after polling, but the increase will be effective retrospectively from April 1.

In Bengaluru, the impact is particularly pronounced. The city alone is projected to account for a large share of the state’s expected 373.6 million units consumption in March, with peak demand touching 2,000–2,500 MW — comparable to the total electricity consumption of a small state. Residents will also face a 3% hike in water charges announced by the Bangalore Water Supply and Sewerage Board (BWSSB), which will be reflected in monthly bills.

Deputy Chief Minister D K Shivakumar criticised the Centre over rising fuel prices and alleged shortages, stating, “The escalating costs are placing an undue burden on citizens. Prices of nearly 900 medicines are set to rise, while certain pharmaceutical products will now attract 12% GST.”

Commuters across Karnataka will also feel the pinch, with toll charges on national highways set to rise by 3–5%, in line with the annual revision linked to the wholesale price index. Cars and jeeps may see an increase of Rs 5–10, while heavier vehicles such as buses and trucks could face hikes of Rs 15–40.

Essential commodities are also becoming costlier. Prices of pulses, edible oils, butter, iron, and cement have already increased, while consumer goods such as air conditioners, coolers, and airfares have reportedly gone up by 15%.

“With multiple price hikes taking effect simultaneously, households and businesses are facing increased financial pressure at the start of FY 2026-27,” officials said, warning that sustained high summer demand, fuel price volatility, and inflationary pressures could further strain both urban and rural consumers.