In the year 1999, Karnataka embarked on a major reform of the power sector. As a first step, Karnataka Electricity Board (KEB) was dissolved and in its place, the Karnataka Power Transmission Corporation Limited (KPTCL) was incorporated. This was followed by the constitution of Karnataka Electricity Regulatory Commission (KERC) in November 1999.

In the next phase of the reform process, the transmission and distribution business managed by KPTCL was unbundled in June 2002. Four new distribution companies were formed to distribute power in Karnataka.

Gulbarga Electricity Supply Company Limited (GESCOM) has taken over the responsibility from KPTCL for the distribution of electricity in 5 districts and commenced its operations from 1st June 2002.