LT or HT: where the line is drawn
Karnataka's Conditions of Supply and the KERC tariff order set the bands. Loads up to 5 kW (4 kW for motive power) can be single phase. Above that, supply is 400 V three phase. Low-tension supply can be given up to 150 kW. Above 150 kW you need high-tension supply at 11 kV or more. Between 50 kW and 150 kW you have a choice: stay on LT, or opt for HT, since the HT tariff applies when contract demand is 50 kW (67 HP) and above.
| Requested load | Supply | What it usually means for you |
|---|---|---|
| Up to 5 kW | 230 V single phase (motive power up to 4 kW) | Small workshops, tailoring units |
| Above 5 kW, below 50 kW | 400 V three phase, LT-5 | Most micro units; ESCOM supplies from a nearby transformer if capacity exists |
| 50 kW to 150 kW | 400 V LT with HT-type metering cubicle, or 11 kV HT if you choose | Often needs a dedicated transformer; compare LT-5 and HT-2(a) bills |
| Above 150 kW | 11 kV or higher, HT-2(a) | Your own transformer, HT panel, CEIG approval |
For LT loads from 50 kW to 150 kW, the tariff order requires HT-grade metering in a metering cubicle. Ask the subdivision early whether the nearest transformer can take your load, because a new or upgraded transformer changes both the cost and the timeline.
Industrial tariff in 2026
LT industries pay a fixed charge per HP of sanctioned load plus an energy charge. An optional demand-based tariff per kW is available above 5 kW and below 150 kW, which lets you connect more machines than the sanctioned load as long as the recorded maximum demand stays within it. HT consumers pay a demand charge per kVA on the billing demand (the higher of recorded maximum demand and 90% of contract demand) plus an energy charge.
| Category | 27 Mar 2025 order, FY2026-27 | After 3 Mar 2026 review (as reported) |
|---|---|---|
| LT-5 fixed charge | ₹150 per HP per month (demand-based option ₹200 per kW) | ₹165 per HP per month |
| LT-5 energy charge | ₹4.40 per unit | ₹5.20 per unit |
| HT-2(a) demand charge | ₹350 per kVA per month | ₹365 per kVA per month |
| HT-2(a) energy charge | ₹6.60 per unit | ₹6.70 per unit |
LT-5 units in village panchayat areas, outside urban development authority limits, get a 20 paise per unit rebate. LT and HT industrial consumers with a sanctioned load of 50 kW and above can opt for the Discounted Energy Rate Scheme, under which units used above a fixed base consumption are billed at ₹5 per unit.
KERC issued a three-year tariff order on 27 March 2025 for FY2025-26 to FY2027-28. On 3 March 2026 it allowed a review petition filed by the five ESCOMs and raised commercial and industrial rates, with the higher charges applied back to April 2025 as reported by Deccan Herald. The Federation of Karnataka Chambers of Commerce and Industry (FKCCI) has challenged the review before the Appellate Tribunal for Electricity (APTEL), which admitted the plea. The rate on your bill is the one that counts. Check it against the latest tariff schedule on the KERC website.
Time-of-day tariff: shift work can save money
Time-of-day (ToD) billing is optional for LT-5 and for HT industries below 500 kVA, and compulsory for HT-2(a) and HT-2(b) consumers with a contract demand of 500 kVA and above. The pattern in the 2025 order is the same for these categories.
| Time | July to November | December to June |
|---|---|---|
| 06:00 to 09:00 | 0 | +100 paise per unit |
| 09:00 to 18:00 | 0 | 0 |
| 18:00 to 22:00 | 0 | +100 paise per unit |
| 22:00 to 06:00 | 0 | -100 paise per unit |
If your process can run at night, such as cold storage, pumping, batch heating or a second shift, ToD can cut the bill. If your peak work happens from 6 pm to 10 pm in the dry months, it will cost more. Run your own load pattern through the table before you opt in.
Worked example: LT or HT for a 60 kW unit
A fabrication unit has a realistic maximum demand of about 60 kW and uses about 15,000 units a month. At 60 kW it can choose LT or HT. Using the rates reported after the March 2026 review, and leaving out tax, ToD, the PF surcharge and rebates:
| LT-5 (about 80 HP sanctioned) | HT-2(a) (say 70 kVA contract demand) | |
|---|---|---|
| Fixed or demand charge | 80 × ₹165 = ₹13,200 | 70 × ₹365 = ₹25,550 (billed on the higher of recorded demand and 90% of contract demand) |
| Energy charge | 15,000 × ₹5.20 = ₹78,000 | 15,000 × ₹6.70 = ₹1,00,500 |
| Monthly total | About ₹91,200 | About ₹1,26,050 |
| One-time cost | HT-type metering cubicle, possibly a share of transformer work | Own transformer, HT panel, CEIG approval |
On these headline rates LT is clearly cheaper for this unit. HT starts to make sense when the load will grow past 150 kW within a few years, when the shared LT transformer gives poor voltage or frequent trips, or when night shifts can use the ToD discount. Run the comparison with your own load list and the latest schedules before you decide, and ask the subdivision how the transformer question would be handled in each case.
Whichever you choose, plan standby power and protection at the same time. A DG set needs its own approvals and a changeover switch that can never back-feed the ESCOM line. And if the roof is large, a solar plant on net metering, now open to industries up to the sanctioned load or 1,000 kW, can cut daytime units; see net metering rules. Raising the load later goes through load enhancement, so leave space in the panel room and the transformer plinth.
From application to power-on
- 1Fix the load and supply voltage
List every machine with its kW or HP, then the realistic maximum demand. Decide LT or HT.
- 2Application to the ESCOM
Online or at the subdivision or division office, with land or lease documents, Udyam or company papers and the load list.
- 3Feasibility and estimate
The ESCOM checks transformer and feeder capacity and issues an estimate for line, transformer or bay work.
- ?Is a new transformer or HT line needed?Yes Get the drawings approved and build it, often by self-executionNo Go to wiring and test report
- 5Drawing approval and safety inspection
Electrical drawings approved, works inspected by the Electrical Inspectorate (CEIG) where the voltage or capacity requires it.
- ✓Agreement, deposits and meter
Security deposit, agreement, meter or metering cubicle, then the service connection.
Where the line or transformer has to be built for you, ESCOMs allow self-execution: you get the work done by a licensed contractor to the ESCOM's specification and pay supervision charges, usually 10% of the estimate excluding employee cost, instead of paying the full estimate. Our guides on HT connection and transformers and CEIG drawing approval and safety inspection explain these steps in detail.
Where industrial connections get stuck
- Load declared too low. The unit starts on 40 kW and adds a compressor and a furnace in the first year. The transformer is then too small and the whole process starts again. Plan for two to three years of growth.
- Land papers not in the applicant's name. A partnership firm applies on land owned by one partner, or a company on a lease that is not registered. Sort this out before applying.
- Transformer site not agreed. The plinth, the fencing and the access for an ESCOM vehicle all need space at the front of the plot.
- Capacitors left for later. Motive power installations must have capacitors as per the Conditions of Supply. Missing capacitors at inspection mean a surcharge from the first bill. See our power factor guide.
- Earthing done in a hurry. HT installations need tested earth pits for the transformer neutral, the body and the lightning arrester. A failed test pushes the inspection back by weeks.
Units in KIADB and KSSIDC areas
Industrial areas developed by KIADB and industrial estates and sheds of KSSIDC usually have HT feeders and substations planned for the estate. That makes connections faster, but it does not remove the ESCOM application. You still apply to the ESCOM for the area (BESCOM, MESCOM, CESC Mysuru, HESCOM or GESCOM), with the allotment letter or lease-cum-sale agreement as the land document.
- Check with the estate office whether the plot has an LT service point or whether you must bring an HT line to your own transformer.
- For small sheds, ask whether the shared transformer has spare capacity. Many sheds in older estates are already at the limit.
- Keep the plot's building plan approval and fire NOC (where needed) ready, as the ESCOM or the inspectorate may ask for them.
Electricity tax exemption under Industrial Policy 2025-30
The Karnataka Industrial Policy 2025-30 came into effect on 8 February 2025. Its operative guidelines, approved by the government on 10 April 2026, offer MSMEs exemption from tax on the electricity tariff and a power subsidy for micro and small units. Zone 1 taluks are the industrially most backward; Zone 3 covers the Bengaluru Urban and Bengaluru Rural taluks.
| Incentive | Zone 1 | Zone 2 | Zone 3 |
|---|---|---|---|
| Electricity tax exemption, general category MSME | 100% for 7 years | 100% for 6 years | Nil |
| Electricity tax exemption, special category (as defined in the policy) | 100% for 8 years | 100% for 7 years | 100% for 4 years |
| Power subsidy for micro and small units | ₹1 per unit for 3 years | ₹1 per unit for 3 years | Nil |
The guidelines state that the electricity tax exemption under the 2025-30 policy takes effect only after the Energy Department issues its enabling notification, and that no exemption certificate should be issued until then. Some websites still quote the older 2020-25 figures, which included 5 years in Zone 3. Apply through the District Industries Centre with your ESCOM power sanction and service letter, and confirm the status with the DIC first.
Tariffs, schemes and ESCOM procedures change. This article explains how things work in practice as of October 2026. Before you pay, sign or buy equipment, confirm the current rule on the KERC website (kerc.karnataka.gov.in), your ESCOM website (BESCOM, MESCOM, CESC Mysuru, HESCOM or GESCOM), at your subdivision office, or on the helpline 1912.
Questions
What is the maximum load for LT industrial supply in Karnataka?
LT supply at 400 V can be given up to 150 kW. Above that, HT supply at 11 kV or higher is needed. From 50 kW to 150 kW you can choose LT with HT-type metering, or HT.
What is the LT industrial tariff in Karnataka in 2026?
Under KERC's March 2026 review order, LT-5 is reported at ₹165 per HP per month fixed charge and ₹5.20 per unit energy charge. The original March 2025 order had ₹150 per HP and ₹4.40 per unit for 2026-27. Check your bill for the rate actually applied.
Is time-of-day tariff compulsory for industries in Karnataka?
It is compulsory for HT-2(a) and HT-2(b) consumers with contract demand of 500 kVA and above. It is optional for smaller HT consumers and for LT-5.
Do I need CEIG approval for a factory connection?
HT installations and other installations above the limits in the CEA safety regulations need drawing approval and inspection by the Electrical Inspectorate. Your contractor and ESCOM will tell you if your installation falls in that bracket.
Is electricity tax exempted for new MSMEs in Karnataka?
The Industrial Policy 2025-30 provides 100% exemption for 6 to 8 years in Zones 1 and 2 depending on category, but the guidelines say it applies only after the Energy Department's notification. Check with the District Industries Centre.
Can I build the transformer myself to speed up the connection?
Yes. ESCOMs allow self-execution of line and transformer works by a licensed contractor to their specification, with supervision charges paid to the ESCOM.
Is HT supply always cheaper than LT for a factory?
No. On the rates reported after the March 2026 review, the LT-5 energy charge is lower than HT-2(a). HT makes sense for loads above 150 kW, for units planning to grow past it, or where reliability and ToD savings matter.
Sources
Rules and figures in this article were checked against these sources on 30 Sep 2026. Schemes and tariffs change, so confirm with the official office before you act.
- KERC Combined Tariff Order 2025 for all ESCOMs (27 Mar 2025), via OpenCity data portal
- ThePrint: KERC increases electricity tariffs for commercial, industrial consumers (Mar 2026)
- ETV Bharat: KERC hikes commercial, industrial power tariffs (Mar 2026)
- Deccan Herald: Tribunal admits FKCCI plea against KERC tariff revision
- BESCOM Conditions of Supply with I and II amendments (2013)
- Operative Guidelines, Package of Incentives under Industrial Policy 2025-30 (approved 10 Apr 2026)
- Grant Thornton: Karnataka Industrial Policy 2025-30 alert
- Bar & Bench: KPTCL can't hike supervision charges on its own (Karnataka HC)
- KPTCL: regulations on self-execution and supervision charges
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