Karnataka’s power companies have asked the Karnataka Electricity Regulatory Commission (KERC) to approve covering a combined revenue gap of nearly ₹4,900 crore. This comes after their filings for account adjustments for 2024-25 showed actual costs are much higher than approved costs. The Federation of Karnataka Chambers of Commerce and Industry (FKCCI) strongly opposes any increase in electricity tariffs. They warned that higher power costs would badly affect the state's factories and industries. Among all power suppliers, Bescom reported the largest revenue gap at ₹2,802.82 crore. The utilities blame this gap on rising power purchase costs, increased interest expenses, higher operation and maintenance costs, and lower revenue collection than expected. They argue that a tariff hike is needed to remain financially stable. However, Bescom’s submission to KERC does not request a specific tariff increase. They only asked for approval to balance their 2025 accounts based on audited data. Bescom stated its net revenue requirement for FY 2025 is ₹34,708.97 crore versus revenue from power sales of ₹31,905.88 crore, creating a shortfall of ₹2,802.82 crore. It estimated the average cost of supplying power at ₹9.35 per unit but earned only ₹8.59 per unit against the approved ₹9.54. Bescom’s deficit comes mainly from lower tariffs realized, rising power purchase costs, and higher finance expenses. On a positive note, Bescom saved ₹110.05 crore by cutting distribution losses below the approved levels. KERC officials said that talks on tariff hikes are ongoing and such increases are expected soon. Published - January 23, 2026 10:30 am IST