Power consumers will have to pay for pension, gratuity of MESCOM employees from 2025-26

Power consumers will have to pay for pension, gratuity of MESCOM employees from 2025-26

Mangalore Today News Network

Mangaluru, February 19, 2025: Electricity consumers of MESCOM will have to pay towards the pension and gratuity of the company employees from 2025-26 onwards.

The consumers will have to pay the amount (their share) on behalf of the government from the next financial year. Though Karnataka Electricity Regulatory Commission (KERC) rejected this proposal stating that it will be a burden on the consumers who need not pay on behalf of the government, the Karnataka High Court has allowed it.

This came to the fore at a public hearing organised by the KERC on the MESCOM’s proposal to hike the power tariff for the next three financial years, in Mangaluru on Tuesday.

P. Ravi Kumar, chairman, KERC, told consumers that KERC cannot intervene in the matter now.

Tariff hike proposed

R. Jayakumar, managing director, MESCOM, proposed to hike the tariff by 70 paise per unit for 2025-26; 37 paise for 2026-27, and 54 paise for 2027-28. Out of that, 36, 35, and 33 paise, respectively, will go towards the pension and gratuity of employees. The remaining amount, 34, two, and 21 paise, in the order of financial years, will go for the operation, maintenance and projects of the company.

The MD projected the cost of power supply per unit for 2025-26 at ₹9.23 and realisation (at the present tariff) at ₹8.53. The cost of power supply per unit for 2026-27 was projected at ₹8.92 and realisation at ₹8.55. It was projected at ₹9.10 and ₹8.56, respectively, for 2027-28.

Total consumers  

He said that the company had 27.04 lakh consumers in 2023-24. Of them, 70.95% were domestic consumers, 9.4% were commercial consumers, 1.45% were industrial consumers, and 15.3% were farm consumers. There were 1.07% other consumers and 1.83% connections were of street lights and water supply projects.

The actual distribution loss during 2023-24 was at 8.63% against the approved 8.85%. It was at 8.42% against the approved 9.1% during 2022-23.

Jawaid Akhtar and H. K. Jagadeesh, members of KERC were present.