State tariff guide
Karnataka industrial electricity tariff: HT-2(a) and LT-5.
Every line on a Karnataka factory bill, from KERC’s tariff order for all five ESCOMs, at the 2026-27 rates. Then a worked bill for a 500 kVA plant at 11 kV, and what one demand spike adds to it.
Who this page covers
Karnataka has five electricity supply companies (ESCOMs) on one tariff, set by the Karnataka Electricity Regulatory Commission (KERC): BESCOM (Bengaluru), CESC Mysuru, HESCOM (Hubballi), GESCOM (Kalaburagi) and MESCOM (Mangaluru).
- HT-2(a): industries on HT supply, including MSMEs, factories, workshops, cold storage, IT and data centres, rice and flour mills, dairies and printing presses. HT supply starts at a contract demand of 25 kVA; above 150 kW (201 HP) it is the only choice.
- LT-5: the same kinds of industry on LT supply, below 150 kW.
KERC’s Tariff Order 2025, issued on 27 March 2025, set the rates for three years: FY 2025-26, 2026-27 and 2027-28. This page uses the 2026-27 rates, billed from 1 April 2026.
HT-2(a) and LT-5 rates
| Charge, 2026-27 | HT-2(a) | LT-5 |
|---|---|---|
| Demand or fixed charge, a month | ₹350 per kVA of billing demand | ₹150 per HP of sanctioned load |
| Demand-based option (5 – 150 kW) | — | ₹200 per kW |
| Energy charge | ₹6.60 per kWh | ₹4.40 per kWh |
Energy is billed in kWh. In 2027-28 the HT-2(a) rates move to ₹355 per kVA and ₹6.50 per kWh, and LT-5 energy to ₹4.30. HT supply at a higher voltage gets a rebate on every unit: 2 paise at 33 or 66 kV, 3 paise at 110 kV and 5 paise at 220 kV. LT-5 units in village panchayat areas get 20 paise off.
Billing demand and the excess demand charge
- Billing demand on HT is the higher of the month’s maximum demand and 90% of contract demand, rounded to the whole kVA. A 500 kVA plant pays for at least 450 kVA every month.
- Above contract demand, the excess kVA pays two times the normal rate, ₹700 per kVA, as a deterrent charge.
- LT-5 demand-based: billing demand is the higher of the sanctioned load and the maximum demand, and demand above the sanctioned load also pays two times the rate.
Seasonal industries get a lower floor in their off season: the higher of maximum demand and 50% of contract demand. The contract demand guide shows how to size the demand you book.
ToD hours: December to June
Time-of-day billing is compulsory on HT-2 from 500 kVA of contract demand and optional below it, and optional on LT-5. It changes the energy charge only, by a fixed amount per unit.
| Hours | December to June | July to November |
|---|---|---|
| 6 – 9 am and 6 – 10 pm | +₹1 per unit | Normal |
| 9 am – 6 pm | Normal | Normal |
| 10 pm – 6 am | −₹1 per unit | Normal |
A unit moved from the morning or evening peak to the night saves ₹2 from December to June. ToD does not apply to units bought under the discounted energy rate scheme. The TOD tariff guide covers which loads can move.
Power factor surcharge
HT consumers must keep the average power factor at 0.90 or above. Below 0.90 lagging, every unit of the month pays 3 paise more for each 0.01 of shortfall. On LT the line is 0.85, at 2 paise for each 0.01, up to 30 paise a unit. Power factor is kWh ÷ kVAh, cut to three decimals and rounded to two, so 0.8949 counts as 0.89. There is no incentive for running above 0.90. The power factor penalty guide explains how to fix it.
Per-unit charges on top of the tariff
- FY25 true-up charge, from KERC’s true-up order of April 2026, on units used from 1 May 2026 to 30 April 2027: BESCOM +56 paise, CESC +15 paise, and refunds at HESCOM and GESCOM (10 paise), MESCOM (9 paise) and Hukkeri HRECS (155 paise). It is shown as its own line.
- Pension and gratuity charge, for the government’s share of ESCOM and KPTCL staff pensions, set by a separate KERC order of March 2025: 36 paise a unit in its first year, stepping down a paisa a year. Take the current figure from your bill.
- FPPCA (fuel and power purchase cost adjustment) changes from month to month with the ESCOM’s power purchase cost. Take it from your bill.
Electricity tax is levied on top by the State Government; take its rate from your latest bill. Bills are due in 15 days, with interest of 1% a month after that. Paying a bill above ₹1 lakh at least 10 days early earns an incentive of 0.25%.
Worked example: a 500 kVA plant at 11 kV
An illustrative BESCOM HT-2(a) plant at 11 kV with a contract demand of 500 kVA, in a month between December and June. Its maximum demand is 470 kVA and it uses 1,50,000 kWh: 45,000 in the peak hours and 40,000 at night. Its power factor is 0.88, the pension and gratuity charge 35 paise and FPPCA nil.
| Bill line | Working | Amount |
|---|---|---|
| Billing demand | Higher of 470 kVA and 90% of 500 kVA | 470 kVA |
| Demand charge | 470 kVA × ₹350 | ₹1,64,500 |
| Energy charge | 1,50,000 kWh × ₹6.60 | ₹9,90,000 |
| Peak-hour charge | 45,000 kWh × ₹1 | ₹45,000 |
| Night rebate | 40,000 kWh × ₹1 | −₹40,000 |
| Power factor surcharge | 0.88 is 2 steps below 0.90: 1,50,000 kWh × 6 paise | ₹9,000 |
| Pension and gratuity charge | 1,50,000 kWh × 35 paise | ₹52,500 |
| FY25 true-up charge | 1,50,000 kWh × 56 paise | ₹84,000 |
| Before electricity tax | About ₹8.70 per kWh | ₹13,05,000 |
Illustrative figures from the KERC tariff order. Your ESCOM may round in its own way, so check against your bill. Work out your own bill with the electricity bill calculator.
The same plant from July to November, with no ToD, pays ₹13,00,000. At HESCOM, with a 10 paise refund in place of the 56 paise charge, the same month comes to ₹12,06,000.
What one demand spike costs
Suppose the same plant has one bad half-hour, say several heavy motors restarting together after a power cut, and maximum demand reaches 600 kVA. Billing demand becomes 600 kVA: the first 500 kVA pay ₹350 each and the 100 kVA above contract demand pay ₹700 each. The bill goes from ₹13,05,000 to ₹13,85,500: ₹80,500 more, for one half-hour. The MD penalty guide explains how to stop it.
Where Karnataka plants usually save
- Keep power factor at 0.90 or above. Raising it from 0.88 to 0.95 removes the ₹9,000 surcharge on this plant every month.
- Move flexible load from the peaks to the night from December to June. Moving 10,000 kWh saves ₹20,000 a month on this plant.
- Keep maximum demand within contract demand. Every kVA above it costs ₹700 for the month.
- Size contract demand to real demand. Below 90% of it you pay for kVA you do not use: at 400 kVA of maximum demand this plant still pays for 450 kVA, ₹17,500 a month.
- Check the per-unit lines. The true-up, pension and FPPCA charges are paise on every unit, so a small error there adds up fast.
How KONDUKTOR® EMS helps
KONDUKTOR® EMS reads the multifunction meters already on your panels and shows, while the month is still running, the numbers this tariff bills you on.
- Running maximum demand against contract demand, with a warning before it crosses.
- Power factor for each meter, so a drop below 0.90 is caught the same day.
- Hourly energy, so you can see how much falls in the peak and night hours.
- Twelve months of maximum demand history, to size contract demand.
Common questions
What is the HT industrial electricity tariff in Karnataka?+
For 2026-27, HT-2(a) industries pay a demand charge of ₹350 per kVA of billing demand a month and an energy charge of ₹6.60 per kWh, under KERC’s Tariff Order 2025 for BESCOM, CESC, HESCOM, GESCOM and MESCOM. ToD from December to June, a power factor surcharge below 0.90, the pension and gratuity charge, FPPCA, the FY25 true-up charge and electricity tax are added on top. Supply at 33 kV and above gets a rebate of 2 to 5 paise a unit.
What is the LT-5 industrial tariff in Karnataka?+
LT-5 industries pay ₹150 per HP of sanctioned load a month and ₹4.40 per kWh in 2026-27. Between 5 and 150 kW they can choose the demand-based tariff instead: ₹200 per kW of billing demand, which is the higher of the sanctioned load and the maximum demand, with the same energy rate. ToD is optional on LT-5.
What is billing demand on HT in Karnataka?+
The higher of the maximum demand recorded in the month and 90% of contract demand, rounded to the whole kVA. A 500 kVA connection pays for at least 450 kVA every month, even if it uses less.
What is the penalty for exceeding contract demand in Karnataka?+
The kVA above contract demand pays two times the normal demand rate, as a deterrent charge under section 126(6) of the Electricity Act. At ₹350 per kVA, 100 kVA over contract demand costs ₹70,000 for that month instead of ₹35,000.
What are the ToD hours in Karnataka?+
From December to June, energy used from 6 to 9 am and from 6 to 10 pm costs ₹1 a unit more, and energy used from 10 pm to 6 am costs ₹1 a unit less. From July to November there is no ToD charge. ToD is compulsory on HT-2 from 500 kVA of contract demand and optional below it.
What is the power factor penalty in Karnataka?+
On HT, if the average power factor falls below 0.90 lagging, every unit of the month pays 3 paise more for each 0.01 below 0.90. On LT the line is 0.85, at 2 paise for each 0.01, up to 30 paise a unit. There is no incentive for a higher power factor.
What is the true-up charge on a BESCOM bill?+
A per-unit charge from KERC’s April 2026 true-up order for FY 2024-25, on units used from 1 May 2026 to 30 April 2027. BESCOM consumers pay 56 paise a unit and CESC consumers 15 paise, while HESCOM and GESCOM consumers get 10 paise back, MESCOM 9 paise and Hukkeri HRECS 155 paise. It appears as a separate line, FY25 true-up charges.
Sources: Karnataka Electricity Regulatory Commission, Tariff Order 2025 for all ESCOMs (27 March 2025), Annexure 9 tariff schedules HT-2(a) and LT-5 and the conditions for billing HT and LT installations; KERC order on the pension and gratuity contribution (March 2025); KERC orders on the annual performance review for FY 2024-25 (April 2026). Published on kerc.karnataka.gov.in and the ESCOM websites. Electricity tax is set by the State Government.
Not sure your bill is right? We check it free.
Send us your latest BESCOM, CESC, HESCOM, GESCOM or MESCOM bill. We check the demand, ToD, power factor and per-unit lines against the tariff and tell you where the money is going.