BENGALURU: From April 1, electricity consumers will have to cough up an additional 36 paise per unit as surcharge in their bills towards government employees’ pension and gratuity for the financial year 2025-26.
The Karnataka Electricity Regulatory Commission (KERC) on Wednesday issued an order allowing energy supply companies (ESCOMS) to recover the government’s share of pension and gratuity (P&G) contributions from consumers.
The P&G contributions will be revised for 2026-27 and 2027-28, where consumers will pay 35 paise and 34 paise, respectively.
Additional 36 paise will also draw 9% electricity tax, says expert
A consumer using 250 units with 5kW fixed charge, who used to pay Rs 2,207.75 per month as electricity bill, will now have to pay Rs 2,305.85. This includes fuel adjustment charges. “In case of Gruha Jyothi consumers, this additional financial burden is passed on to the government to pay the monthly subsidy amount to ESCOMS,” said an official from the energy department.
MG Prabhakar, advisor, energy committee, FKCCI, said this 36 paise is an additional burden on consumers. He said this 36 paise will also draw a 9% electricity tax, which is an additional burden on consumers. Also, for the next three years, consumers will pay pending arrears and additional P&G contributions apart from power consumption charges.
KERC chairman P Ravi Kumar said henceforth P&G charges will be part of electricity bills. This 36 paise surcharge is different from the power tariff revision to be announced. KERC followed the order of the High Court of Karnataka in this regard.
The court dismissed the petition filed by FKCCI and issued an order on March 25, 2023, mandating KERC to take steps to include it in the consumer tariff. In 2006, a tripartite agreement on financial management between employees’ union and their associations, the state government and KPTCL and ESCOMs was reached.
They agreed to contribute and share one-third of the amount collected towards P&G. On January 1, 2022, the government issued a directive that its one-third contribution to the power sector management should be collected from consumers. In 2023, the government amended the Karnataka Electricity Reforms (Transfer of Undertakings of KPTCL and its Personnel to Electricity Distribution and Retail Supply Companies) Rules of 2002.
Following this, KPTCL told KERC that their dues for six years amounted to Rs 4,659.34 crore. KERC issued an order to collect Rs 2,812.83 crore from consumers for 2025-26 and Rs 2,845.75 crore and Rs 2,860.97 crore for 2026-27 and 2027-28, respectively.