The Karnataka Electricity Regulatory Commission has extended the Discounted Energy Rate Scheme (DERS) for two more years, covering the financial periods 2026-27 and 2027-28. The decision was announced in an order issued on March 31, 2026, under the leadership of Chairman Sri P. Ravi Kumar and Member Sri H.K. Jagadeesh. With this move, the Commission has ensured that consumers across different categories in the state will continue to receive relief through discounted electricity rates.

The scheme was originally introduced in 2021 for High Tension (HT) consumers to promote higher electricity consumption by offering reduced tariffs. Over time, its scope was expanded to include Low Tension categories such as LT-3 and LT-5, allowing a broader group of users to benefit. While the continuation of the scheme beyond 2025 had not been confirmed earlier, a recent request from Bangalore Electricity Supply Company played an important role in the Commission’s latest decision. BESCOM highlighted the positive impact of the scheme and also proposed that consumers using Open Access should be allowed to participate. Other electricity supply companies in the state did not formally submit their views on the extension.

One of the key changes introduced in this order is related to Open Access consumers. Earlier rules, issued in 2025, required consumers to give up their Open Access or wheeling arrangements if they wanted to avail of the discounted rates under the scheme. They also had to submit a written undertaking confirming that they would not use external power sources. This restriction has now been removed, making the scheme more flexible and inclusive.

Under the revised conditions, consumers in categories such as HT-2a, HT-2b, HT-2ci, HT-2cii, LT-3a, and LT-5 are eligible to participate in the scheme, including those who continue to use Open Access. However, the Commission has introduced a condition for such consumers. Those opting into the scheme while using Open Access will not be allowed to claim the additional 20 percent contract demand benefit, which normally permits consumption beyond the sanctioned load without penalties.

The order also explains how base consumption will be calculated for participants during the extension period. For consumers joining the scheme in FY2026-27 or FY2027-28, the base consumption will be determined based on the average monthly usage during the financial years 2024-25 and 2025-26. In cases where two full years of data are not available, the calculation will be based on at least six months of consumption data. For new installations or consumers who have recently changed their contract demand, the guidelines mentioned in the 2025 Tariff Order will continue to apply.

Through this extension, the Commission aims to balance the interests of both consumers and electricity supply companies. It seeks to continue the benefits of discounted tariffs while also ensuring operational flexibility, especially for industrial and commercial users. At the same time, by keeping most of the earlier terms and conditions unchanged, the order provides stability and predictability in the state’s power tariff structure over the next two years.