BJP govt. decided in 2022 to make power consumers pay towards pension, gratuity of escom staff, says Congress

The Congress said on Monday that it was the State government led by the BJP which took a decision in 2022 to make electricity consumers to pay towards the pension and gratuity of employees of electricity supply companies (escoms) and Karnataka Power Transmission Corporation Ltd. (KPTCL), and issued necessary orders.

Addressing presspersons here J.R. Lobo, former MLA, Mangaluru City South, said that the government led by the BJP issued an order on March 9, 2022, stating that the government will not be able to fund the Pension and Gratuity Trust and the same amount be recovered through consumer tariff.

He said that the BJP government did not make any provision in the Budget for making government contribution to Pension and Gratuity Trust for 2021-22.

Mr. Lobo said that it was the Karnataka Electricity Regulatory Commission (KERC) which on March 18, 2025, ordered to include 36 paise per unit as the Pension and Gratuity Trust cess in the electricity bill of consumers and not the State government led by the Congress.

The former MLA said that the BJP is only misleading people by blaming the Congress government as responsible for including the additional amount in the bill of consumers.

Chronology of events

Referring to the chronology of events that led to the inclusion of Pension and Gratuity Trust amount in the electricity bill of consumers Mr. Lobo, a former Karnataka Administrative Service (KAS) official, said that the then Karnataka Electricity Board (KEB) was unbundled in July 1999 and KPTCL was formed as part of the reforms in the power sector in the country.

Prior to unbundling of KEB, the pension and gratuity related expenses were recovered by KEB through consumer tariff only as the expenses formed a part of employees expenses, he said.

“At the time of unbundling, the service conditions of the employees were protected and payment of terminal benefits were guaranteed as per the tripartite agreement between State government, KEB and union/associations on July 31, 1999. The government through actual valuation arrived at ₹4,703 crore as the fund required for taking care of pension and terminal benefits of all the pensioners and employees who existed as on May 31, 2002,” Mr. Lobo said.

“Accordingly, under the ‘Pay as You Go’ method the government every year, till 2021 released ₹12,700 crore to the trust,” the former MLA said.

Notification

Mr. Lobo said following March 9, 2022, order by the BJP led government, the same government through orders issued on November 15, 2022, and on November 24, 2022, ordered KPTCL to claim the arrears from 2021-22 to 2022-23 in the tariff.

Further, the government through a December 31, 2022, notification amended the “Second Transfer Scheme Rule” and directed the KPTCL to claim the government portion in the tariff.

However, the FKCCI challenged the notification before Karnataka High Court (W.P. 4010/2023) which on March 25, 2024, dismissed the petition filed by the FKCCI and upheld the amendments made by the government to rules which provided for claiming contribution to the trust through the tariff.

Later the KERC in its March 18, 2025 order asked escoms and KPTCL to include 36 paise per unit as the Pension and Gratuity Trust cess in the electricity bill of consumers.

Mr. Lobo said that 10 paise of 36 paise went towards arrears and the remaining 26 paise was for pension and gratuity.

K. Harish Kumar, former MLC and president of Dakshina Kannada Congress Committee was present.