The Karnataka Electricity Regulatory Commission (KERC), on December 12, 2025, issued the Draft Karnataka Electricity Regulatory Commission (Roadmap for Reducing Cross-Subsidy and Cross-Subsidy Surcharge) Regulations, 2025.
The following has been stated namely: -
• Maintaining Cross-Subsidy level in the consumer tariff within ±20% Band:- The Commission shall always endeavour to maintain the cross-subsidising and cross-subsidised level within ±20% Band.
• Provided that, in respect of the consumer tariff categories other than those considered in Clause 4 above, the Commission reserves the right to make adjustments to the crosssubsidy level as it deems necessary, subject to the condition that any such adjustments shall not exceed 5% (five percent) of the cross-subsidy level prevailing in the financial year 2027-28, and shall not in any case exceed the band of 20% (twenty percent).
• Provided further that in respect fo the consumer tariff categories considered in Clause 4 above, the Commission reserves the right to make adjustments to the cross-subsidy level as it deems necessary, subject to the condition that any such adjustments shall not exceed 5% (five percent) of the cross-subsidy level prevailing in the financial year 2033-34, and shall not in any case exceed the band of 20% (twenty percent).
• Cross Subsidy Surcharge: The methodology and the rates for computation/reduction of Cross Subsidy Surcharge shall be as prescribed in the Tariff Policy, issued by the Government of India from time to time.
• Interested persons/stakeholders are requested to furnish/submit their views, comments/objections/suggestions, if any, on the proposed Regulations within January 11, 2026, to the Secretary, Karnataka Electricity Regulatory Commission, No.16, C-1, Miller Tank Bed Area, Vasanthanagar, Bengaluru-560052.
[Notification No. DD(Tariff)/CSS-Roadmap/2025-26/ 1322]
