THIRUVANANTHAPURAM: Apart from the huge salary cost, the Tariff Second Amendment Act is moving to impose the huge pension liability of KSEB also on the public. The Electricity Regulatory Commission will take evidence from the public on January 4 in this regard. Another rate hike will be introduced in April with this added liability. The rate was increased last November as well.

KSEB has asked the commission to include the liability of Rs 480 crore arising from the implementation of salary hike next year in the tariff also, apart from the pension cost. In 2013, a master trust system was created to meet the pension liability. According to this, KSEB and the government had issued bonds of 8144 crores and 3751 crores respectively. KSEB had decided to pay 10% interest and the government 9% interest, on this. It was also agreed that the interest cost of KSEB would be levied from the public by making it their general expenditure.

However, with KSEB running into losses, from 2021 it was decided to collect not only the interest but also the expenditure incurred by the government in addition to the amount given for pension, as a tariff from the public. The High Tension and Extra High Tension Industrial Electricity Consumers Association questioned this in the High Court and the court blocked it.

Meanwhile, with the expiry of the 10-year term of the bond, the government has fully withdrawn from the pension liability. With this, it has become a situation where KSEB has to bear the entire cost. The new move is to overcome this.

Pension liability (in crores)

2017-18...................1341.36
2018-19...................1378.04
2019-20................... 1558.88
2020-21.....................1737.05
2021-22................... 2376.69
2022-23................... 2524.10