KERC Highlights Tariff Reforms, Regulatory Oversight and Consumer-Centric Power Sector Governance in FY25

KERC Highlights Tariff Reforms, Regulatory Oversight and Consumer-Centric Power Sector Governance in FY25

The Electrical Post

Bengaluru: The Karnataka Electricity Regulatory Commission (KERC) has reaffirmed its commitment to fostering an efficient, economical and competitive power sector while safeguarding consumer interests, according to the Foreword of its Twenty-Sixth Annual Report for FY 2024-25 presented by Chairman Shri P. Ravi Kumar I.A.S. (Retd.).

The report outlines the Commission's key regulatory achievements during the year and its continued efforts to strengthen Karnataka's electricity sector through transparent tariff determination, policy reforms and stakeholder engagement. KERC stated that its activities during FY25 were guided by the provisions of the Electricity Act, 2003, with a focus on balancing the interests of consumers, utilities and other stakeholders across the power value chain.

A major highlight of the year was the issuance of Multi-Year Tariff (MYT) Orders for the next control period of 2026-28. The Commission finalized tariff orders for Karnataka Power Transmission Corporation Limited (KPTCL) and the state's major electricity distribution companies, including BESCOM, MESCOM, CESC, HESCOM and GESCOM, along with one Rural Electric Cooperative Society and two Special Economic Zones. The MYT framework is expected to provide greater financial visibility and operational stability for utilities while ensuring reliable power supply to consumers.

The Commission also undertook the Annual Performance Review of all these entities and issued tariff orders for Annual Revenue Requirement (ARR) and retail supply tariffs for FY26, FY27 and FY28. These measures are aimed at ensuring cost-reflective tariffs, improving utility performance and promoting financial sustainability across the sector.

During the year, KERC continued its regulatory functions through the notification of various regulations and the adjudication of petitions filed by licensees, generating companies and other stakeholders. The Commission also addressed matters related to open access and licensing, reflecting its focus on promoting competition and improving access to the electricity market.

The Chairman noted that KERC remains dedicated to creating a power sector that is consumer-friendly, financially viable and capable of supporting Karnataka's growing energy requirements. The Commission's actions during the year were directed towards improving service quality, ensuring regulatory certainty and strengthening governance across the electricity sector.

As Karnataka's power demand continues to rise due to industrial growth, urbanization and increasing electrification, the Commission emphasized the importance of sound regulatory frameworks in supporting investments in transmission, distribution and generation infrastructure. The MYT regime and tariff reforms are expected to provide utilities with a clearer roadmap for operational planning while encouraging efficiency improvements and prudent cost management.

The Chairman also acknowledged the contributions of Commission Members, staff, the Advisory Committee, licensees and other stakeholders in supporting the regulatory process during FY25. He expressed confidence that continued cooperation among all stakeholders would help achieve the objectives of the Electricity Act, 2003, while ensuring reliable, affordable and quality electricity supply for consumers across Karnataka.

With tariff reforms, performance-based regulation and consumer protection remaining central to its agenda, KERC is expected to play a crucial role in shaping Karnataka's evolving power sector and supporting the state's long-term energy development goals.

Published at : Sep 07, 2026 06:35 AM (IST)

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