BENGALURU: Consumers and industries strongly opposed the proposal made by Electricity Supply Corporations Limited (Escoms) to hike power tariff by 67 paise, 50 per cent of which (35 paise) will be to contribute as pension and gratuity (P&G) of employees, recruited before 2006.
During the public hearing organised by Karnataka Electricity Regulatory Commission (KERC) on Monday, consumers chorused their opinion that P&G should be borne by the government. They also voiced that they should not be burdened for the government’s Gruha Jyothi Scheme.
An energy department official said, “All ESCOMs have sought for a uniform tariff hike of 67 paise, of which 50% will go to P&G. If KERC agrees it will be listed as a separate column in the bills generated.”
In 2006, a tripartite agreement was drawn on financial management between employees union and association, the state government and the KPTCL and ESCOMs. Each was decided to contribute and share one-third of the amount collected. Later, on January 1, 2022, the government issued directions that its one-third contribution to the power sector management be collected from consumers in the tariff.
“From last two years, ESCOMs have been demanding to be included in the tariff calculation, but it is not done. Last year the industry associations had approached the High Court opposing this. The court ruled in favour of the employees. Thus, this year, the ESCOMs have again asked tariff hike be done incorporating the six years arrears and this fiscal’s amount.”
According to ESCOMs calculation, the annual P&G contribution is Rs 2000 crore. The ESCOMs have demanded that arrears be collected over next six years, which is an additional Rs 700 crore, annually. This will make it Rs 2700 crore, including arrears, which will be collected annually from consumers in their bills.
Members of Federation of Karnataka Chamber of Commerce and Industry opposed this. M G Balakrishna, President, FKCCI said, Bescom cannot burden its consumers to pay pension to its employees by increasing the tariff rate. He said tariff should be determined within 20% of the cost and distribution losses should not be loaded upon consumers. KERC Chairman P Ravi Kumar said it was a public hearing and no decision has been taken yet
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