The Karnataka Electricity Regulatory Commission has issued a draft notification to amend its existing fee regulations in order to align with changing practices in the state’s power sector. The Draft Karnataka Electricity Regulatory Commission (Fee) (First Amendment) Regulations, 2026, dated March 23, 2026, proposes updates to the current fee structure to better support modern procurement methods, especially for transmission projects.
The key reason behind this move is Karnataka’s shift towards implementing intra-state transmission projects through the Tariff-Based Competitive Bidding (TBCB) process. This transition follows guidelines issued by the Ministry of Power, which aim to bring more transparency and competition into the sector. Under this framework, the Commission plays an important role in granting transmission licenses to Special Purpose Vehicles (SPVs) selected through bidding and approving the tariffs under the Electricity Act.
To support these responsibilities, the Commission has identified the need to revise its fee regulations so that it can effectively collect annual license fees and tariff adoption fees from entities participating in competitive bidding. The proposed changes mainly focus on simplifying the fee structure and introducing new charges where required.
One of the major changes proposed relates to annual license fees for “Other Transmission Licensees.” Under the current rules, these licensees are required to pay Rs. 1,00,000 per MW, with a minimum annual fee of Rs. 20 lakh. The draft amendment suggests replacing this capacity-based system with a flat fee of Rs. 20 lakh per year, regardless of the size or capacity of the project. This is expected to simplify the payment process and reduce complexity for developers.
In addition to this, the Commission has proposed a new provision under clause 7(a). This clause introduces a separate fee for the adoption of transmission tariffs. As per the draft, any application submitted for tariff adoption under Section 63 of the Electricity Act must be accompanied by a fee of Rs. 25 lakh. This is a new addition and is aimed at formalizing the process of tariff approval for competitively bid projects.
The Commission has also invited comments and suggestions from the public and stakeholders on the proposed amendments. Interested parties have been given fifteen days from the date of publication in the official gazette to submit their feedback. All responses are to be sent to the Secretary of the Commission at its Bengaluru office.
These proposed regulations will come into effect from the date they are officially published in the gazette. Through these changes, the Commission aims to create a clearer and more structured fee system, making it easier for private players to participate in the development of transmission infrastructure in Karnataka.
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