KSEB's salary extravagance reason for increasing electricity rates; CAG calls for government's intervention

THIRUVANANTHAPURAM: CAG said that KSEB's extravagance in the name of salary revision is leading to frequent increases in electricity rates in the state. It has come to the knowledge that in the report submitted by the Comptroller and Auditor General to the state it is said that the power department has been negligent in preventing this and the government should intervene. This will become a public record after the government examines it and puts it in the legislature.

The CAG report comes when KSEB, which had hiked rates in June last year, is set to hike rates again this month. Although the board was in profit last financial year, it is planning to increase the rate this time saying that there is no way to cover the accumulated losses. Public outrage against this is widespread.

State government policy prohibits salary revision in institutions running on loss. KSEB has a loss of Rs 6498 crore. Yet in 2016 and 2021, the government hiked the salary sharply without approval. Salary expenses increased from 36.01% to 46.5%. With this, KSEB employees are paid more than government employees, despite running on loss. In govt service driver's salary is Rs 63700 whereas in KSEB it is Rs 76400. Things are not different for other posts in KSEB as well. CAG accused this as an extravagance. KSEB The Chairman and Board of Directors are responsible for this.

The salary hike was implemented during NS Pillai's tenure as chairman. Chairman B Ashok, who later took over, reported to the government that this was illegal, but not only was no action taken, he was transferred as well.

543 crores in excess salary liability

KSEB incurred an additional liability of 543 crores through salary hike. To compensate this, permission was sought from the State Electricity Regulatory Commission to increase the electricity tariff by 31 paise per unit. The CAG report points out that it is not fair to put the burden on the public for an excess liability that was created due to the salary hike which was done without permission. Now it is up to the state government to take a decision in this regard.