One Unit of Electricity Cost in Karnataka: The Real Rate
One unit of electricity cost in Karnataka for a domestic home is Rs 5.80 in FY 2026-27, the flat energy charge fixed by KERC's tariff order of 27 March 2025, plus a 35 paise per unit pension and gratuity surcharge. That headline is accurate but misleading. You also pay Rs 150 per kW of sanctioned load every month, so a 2 kW home using 250 units actually pays about Rs 7.35 per unit before tax, and the same home using 100 units pays about Rs 9.15 per unit. The less you use, the more each unit costs you.
One unit of electricity cost in Karnataka at a glance
Item | FY 2026-27 value | Charged on |
|---|---|---|
Energy charge (domestic, LT-2) | Rs 5.80 per unit | Every unit consumed |
Pension and gratuity surcharge | Rs 0.35 per unit | Every unit consumed |
Fixed charge | Rs 150 per kW per month | Sanctioned load, used or not |
FPPCA | Varies monthly | Every unit, as notified |
Electricity tax | Rate printed on bill | Charges as per state notification |
Gruha Jyothi | Free up to your entitlement | Eligible domestic homes only |
All values: KERC Combined Tariff Order dated 27 March 2025 covering FY 2025-26 to FY 2027-28, cross-checked against Deccan Herald (28 March 2025) and PTI reporting.
Why the "Rs 5.80 per unit" answer is incomplete
Karnataka stopped using slab rates for domestic homes. There is now one energy rate for every unit. That makes the per-unit question look simple, but the bill has a second engine: the fixed charge. It is billed on your sanctioned load, not your usage, so it gets spread across however many units you used that month.
The fact most rate pages skip is that KERC deliberately shifted cost from the energy charge to the fixed charge in this tariff cycle. Energy dropped by 10 paise (from Rs 5.90), but the fixed charge rose from Rs 120 to Rs 145 per kW in FY 2025-26 and to Rs 150 in FY 2026-27. Deccan Herald's analysis at the time noted that homes on 2 to 3 kW meters save about Rs 15 on energy but pay Rs 50 to Rs 65 more in fixed charges each month.
Effective cost per unit at different usage levels
This table assumes a 2 kW sanctioned load, no Gruha Jyothi benefit, and excludes electricity tax and FPPCA because both vary.
Monthly units | Energy (Rs 5.80) | Surcharge (Rs 0.35) | Fixed (2 kW × Rs 150) | Subtotal | Effective Rs per unit |
|---|---|---|---|---|---|
50 | 290.00 | 17.50 | 300 | 607.50 | 12.15 |
100 | 580.00 | 35.00 | 300 | 915.00 | 9.15 |
200 | 1,160.00 | 70.00 | 300 | 1,530.00 | 7.65 |
250 | 1,450.00 | 87.50 | 300 | 1,837.50 | 7.35 |
400 | 2,320.00 | 140.00 | 300 | 2,760.00 | 6.90 |
600 | 3,480.00 | 210.00 | 300 | 3,990.00 | 6.65 |
The pattern is clear: the effective rate falls toward Rs 6.15 (energy plus surcharge) as usage rises, and climbs steeply at low usage.
How sanctioned load changes your per-unit cost
Same 200 units, different sanctioned loads:
Sanctioned load | Fixed charge | Subtotal at 200 units | Effective Rs per unit |
|---|---|---|---|
1 kW | Rs 150 | Rs 1,380 | 6.90 |
2 kW | Rs 300 | Rs 1,530 | 7.65 |
3 kW | Rs 450 | Rs 1,680 | 8.40 |
5 kW | Rs 750 | Rs 1,980 | 9.90 |
So a lower sanctioned load is cheaper per unit, but only if your actual peak stays under it. Cross it and you pay an excess-load penalty. The MD penalty in electricity bill guide shows when reducing or increasing load is the cheaper move.
How to calculate your own bill in four steps
- Find "Units consumed" and "Sanctioned load" on your bill.
- Multiply units by Rs 6.15 (Rs 5.80 energy + Rs 0.35 surcharge).
- Add Rs 150 for every kW of sanctioned load.
- Add the FPPCA and electricity tax lines printed on your bill.
Divide the total by units consumed to get your true cost of one unit. If your bill is from before April 2025, use Rs 5.90 and Rs 120 instead.
What Gruha Jyothi does to the per-unit cost
If you are enrolled and stay within your entitlement, the cost of one unit to you is zero, because the government pays both energy and fixed charges. The arithmetic gets harsh at the edges:
- Entitlement 150 units, use 165: you pay roughly 15 × Rs 6.15 = Rs 92 plus applicable charges on the excess.
- Entitlement 150 units, use 205: you cross 200, so the full bill applies, about Rs 1,561 at 2 kW before tax.
That 40-unit jump can cost about Rs 1,400. If you sit near 200 units, every unit above 200 effectively costs you the whole month's bill. Your entitlement is based on FY 2022-23 consumption, which is why the old electricity bill download guide matters if you want to verify it.
Commercial and other categories
This page covers domestic (LT-2) homes. KERC also cut commercial and industrial energy charges sharply in FY 2025-26: LT industrial fell by 160 paise per unit, and HT commercial fell from Rs 8.00 to Rs 5.95. If you run a shop or workshop, read your tariff category on the bill before applying the domestic numbers above.
Honest pros and cons of the flat-rate system
Pros: easy to calculate; heavy users no longer pay a top slab of Rs 8 to Rs 9 per unit; rooftop solar users get a Rs 25 per kW fixed-charge rebate up to 10 kW.
Cons: small households, pensioners and single occupants carry a heavier fixed charge per unit; fixed charges rise again in FY 2027-28 to Rs 160 per kW; many third-party calculators still use abolished slabs and give wrong answers.
Decision framework: is reducing your per-unit cost worth effort?
Profile | Fit | Best lever |
|---|---|---|
Under 100 units, sanctioned load 3 kW+, never near peak | Strong fit | Apply to reduce sanctioned load (watch the MD penalty) |
200 to 400 units, own roof | Strong fit | Rooftop solar plus the fixed-charge rebate |
Near the 200-unit Gruha Jyothi line | Strong fit | Shift heavy loads to stay under 200 |
Within Gruha Jyothi entitlement | Not a fit | Your unit cost is already zero |
Tenant without control of the meter | Marginal fit | Ask the owner about load; track usage |
Inverters and home batteries do not lower your per-unit cost; they store grid power and lose some in conversion. They make sense for outage backup, not savings, unless paired with solar. If backup is the need, compare Adwin inverter batteries.
FAQs
What is one unit of electricity cost in Karnataka in 2026?
The domestic energy charge is Rs 5.80 per unit in FY 2026-27, plus a 35 paise pension and gratuity surcharge. Fixed charges of Rs 150 per kW push the effective cost to roughly Rs 6.65 to Rs 12 per unit depending on usage. Verify at publish.
Is there a slab rate for domestic electricity in Karnataka now?
No. Domestic billing uses a single flat energy rate. Calculators showing slabs such as Rs 3.30, Rs 5.45 and Rs 7.10 are using pre-2023 rates and will give a wrong total.
How much does 100 units of electricity cost in Karnataka?
For a 2 kW home without Gruha Jyothi, about Rs 915 before tax and FPPCA: Rs 580 energy, Rs 35 surcharge and Rs 300 fixed. With a valid Gruha Jyothi entitlement of 100 or more units, it costs nothing.
How much does 200 units of electricity cost in Karnataka?
About Rs 1,530 for a 2 kW home before tax and FPPCA. If your Gruha Jyothi entitlement covers all 200 units, the bill is zero, but at 201 units the full bill applies.
What is the BESCOM fixed charge per kW?
Rs 150 per kW per month for domestic consumers in FY 2026-27, rising to Rs 160 in FY 2027-28. The same rates apply across all five Karnataka ESCOMs. Verify at publish.
Is the unit rate the same for BESCOM, MESCOM, HESCOM, GESCOM and CESC?
Yes. KERC's combined tariff order sets the same domestic retail tariff for all five ESCOMs. Differences in your bill come from load, usage, FPPCA and arrears, not the company.
What is the 35 paise surcharge on my bill?
It is a pension and gratuity surcharge approved by KERC to fund retirement liabilities of KPTCL and ESCOM employees. It is 36 paise in FY 2025-26, 35 paise in FY 2026-27 and 34 paise in FY 2027-28.
Does rooftop solar reduce the fixed charge in Karnataka?
Yes, domestic consumers with rooftop solar get a rebate of Rs 25 per kW on fixed charges for systems up to 10 kW. The bigger saving is the units you no longer buy from the grid.
Conclusion
The honest answer to one unit of electricity cost in Karnataka is Rs 5.80 plus 35 paise on the rate card, and Rs 6.65 to Rs 12 in reality once fixed charges are spread over your actual usage. Check your sanctioned load first; it decides your true rate more than anything else on the bill. For the full bill walkthrough, return to the Karnataka electricity bill.
.jpeg)
.jpeg)
.jpeg)
.jpeg)
