BENGALURU: Karnataka Energy Minister KJ George on Thursday said the State government has not increased electricity rates by 36 paise per unit, it’s the Karnataka Electricity Regulatory Commission (KERC) that has implemented the Karnataka High Court order to collect the government’s contribution towards employees’ pension and gratuity.
He told the media that pension and gratuity issues of Karnataka Power Transmission Corporation Limited (KPTCL) and Energy Supply Corporations (Escoms) staff have been taken up in accordance with a Karnataka High Court order in March 2024. Following this, KERC implemented a tariff hike.
He said: “Our government has not increased electricity rates by 36 paise per unit. The hike follows the High Court order allowing KPTCL and Escom staff to recover pension and gratuity payments from customers. Based on this, KERC issued the directive. As a result, for financial year 2025-26, the rate has been raised by 36 paise per unit.”
He added that after dissolution of the Karnataka Electricity Board (KEB) and formation of KPCL and five Escoms, the BJP government had in March 2022 submitted a proposal to KERC, requesting approval to recover pension and gratuity contributions from customers. However, KERC had not approved of the proposal, but after the High Court order, KERC issued the new directive, he said.
“In 2022, during the BJP government’s tenure, amendments were made to the Karnataka Electricity Reform Rules. These changes enabled KPCL and Escoms to file a petition with KERC to recover pension and gratuity contributions from customers,” George said.
The Federation of Karnataka Chambers of Commerce and Industry had challenged the proposal in the HC, which rejected the petition on March 25, 2024. Following the court order, KPCL and Escoms submitted a fresh application to KERC on November 30, 2024, George said.