CESC officials justify surcharge

Karnataka Government has gone bankrupt, says MLA Srivatsa

Mysuru: Residents across Karnataka are feeling the pinch as the State Government continues to find new ways to shore up its coffers, piling fresh financial burdens on the public. Following a slew of hikes in milk and curd prices, property tax, land registration charges, stamp duties, fuel rates, electricity tariffs, liquor prices, KSRTC bus and metro fares, and professional college fees, citizens will now pay an additional surcharge on their electricity bills to fund Government employees’ pension and gratuity.

Karnataka Electricity Regulatory Commission (KERC) has issued an order permitting all power supply companies (ESComs), including the Chamundeshwari Electricity Supply Corporation (CESC), to collect an extra 36 paise per unit as Pension and Gratuity (P&G) contribution from April 2025. This surcharge will remain in place until the end of the 2027-28 financial year, with a gradual decrease to 35 paise per unit in 2026-27 and 34 paise in 2027-28. Consumers will also have to clear pending arrears along with these contributions for the next three years.

According to KERC order, “The levy comes into effect from April 1, 2025 and remains in force for the entire duration of the control period, or as decided by the Government from time to time.”

Many consumers have raised objections, pointing out that the surcharge was approved without public consultation. “Usually, KERC holds public hearings before increasing tariffs. This time, they made a unilateral decision under political pressure. On one hand, they talk about Guarantee Schemes, but on the other, they hike prices and take the money back,” said a resident. With this new surcharge, many fear that household budgets already strained by rising prices will be stretched in the coming years.

Reason for justification

Speaking to Star of Mysore this morning, Sunil, Superintending Engineer (SE) of CESC, refuted claims that the KERC unilaterally imposed the Pension and Gratuity (P&G) surcharge.

“During the last KERC hearing in Mysuru, the matter was discussed in detail, and as usual, industries and consumers raised objections. The decision was taken by the Government and approved by the Cabinet. This cess will not be a burden on consumers because we have reduced power tariff by 76 paise per unit, so even with the additional 36 paise towards pension contributions, consumers are still benefiting by 40 paise per unit,” SE Sunil claimed.