The Karnataka Electricity Regulatory Commission (KERC) on Thursday allowed energy supply companies (ESCOMs) to recover the government’s share of pension and gratuity (P&G) contributions from consumers. This has resulted consumers to pay an extra 36 paise per unit from 1 April, reported PTI.
According to the report, the P&G contributions will be revised for FY 2026-27 and FY 2027-28, with consumers paying 35 paise and 34 paise per unit, respectively.
Following the Government of Karnataka's order, the Commission allows ESCOMs to recover the government’s portion of pension and gratuity contributions uniformly from their consumers as 'P&G Surcharge (Government Portion),' stated the KERC order dated March 18.
"The aforesaid levy shall come into effect from April 1, 2025, and remain in force for the entire duration of the control period, commencing from FY 2025-26 and concluding in FY 2027-28, or as decided by the government from time to time," PTI quoted KERC as saying.
State BJP president B Y Vijayendra criticised the move, stating that since the "anti-people" Congress government came to power in Karnataka, the only guarantee it has implemented is "price hikes".
"People of the state must be cautious about the 36 paise increase in power tariffs, as the current government is a pickpocket government. On one hand, they claim to be implementing guarantee (populist) schemes, while on the other, they are burdening the people with price hikes and taking back the money," he alleged.
Karnataka Minister Sharan Prakash Patil clarified that the increase will not affect the common people. While speaking to TV9, he stated that the Gruha Jyothi scheme, which provides 200 units of free electricity, remains unaffected.
"The hike applies only to those who consume more than 200 units. The BJP is misleading people by siding with the wealthy. The government has not increased the rates; the autonomous KERC has done so. The BJP's allegations are baseless," he said.
With agency inputs.
Catch all the Business News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.