Bengaluru (Karnataka): The Karnataka government has reaffirmed that the subsidy for its flagship Gruha Jyothi scheme is being paid in advance to Electricity Supply Companies (ESCOMs) and will not be recovered from consumers, according to an official statement from the Energy Ministry.
Energy Minister K J George clarified this matter following 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 stated.
The minister emphasized that when the Gruha Jyothi scheme was announced, the government committed to providing free electricity up to 200 units for households, with the entire subsidy being covered by state funds.
“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.
Clarification on Regulatory Provisions
Addressing concerns about regulatory rules, the minister noted:
“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.”
Potential Electricity Tariff Hike
Chief Minister Siddaramaiah had announced the provision of 200 units of free electricity, fulfilling a Congress election promise made before the 2023 Assembly elections.
Meanwhile, in December 2024, ESCOMs submitted a proposal to the Karnataka Electricity Regulatory Commission (KERC) seeking an electricity rate hike for the next three years under the Multi-Year Tariff (MYT) system.
As per the proposal, ESCOMs have suggested:
- A 67 to 70 paise increase per unit for 2025-26
- A 70 to 75 paise increase per unit for 2026-27
- A 85 to 90 paise increase per unit for 2027-28
If KERC approves these hikes, consumers will bear the additional cost.