01 September,2011 06:15 AM IST | | Johnlee Abraham
Experts feel that the state govt's untimely largesse towards 'non-performing' power company staff will only add to the burden of people already paying hiked bills
The people are bracing for another hike in utility bills and the government, in an unusual show of benevolence towards 'non-performing' employees of Electricity Supply Company (ESCOM), has decided to raise their pay by 25 per cent, though they are well aware that the burden will ultimately be borne by consumers. The move has come under severe criticism as experts claim that the state government has no right to hike salaries, especially when uninterrupted power is far from reality.
Rs 4 Per Unit of current, Rs 4.88 Per Unit proposed
"I do not understand why the state is rewarding non-performers? There is no harm in hiking salaries of employees, but it should not happen at the expense of poor consumers, who will in the end foot the bills," said Shridhar Prabhu, energy sector advocate.
Representation pic
He added that except for the Mangalore supply company, all other utilities in the state are reeling under heavy losses. Even CAG reports have pointed out serious anomalies in the functioning of these companies.
The government recently announced all ESCOM employees would get a 25 per cent salary hike.
"The government is just a stakeholder, but each ESCOM is a separate entity with its own respective board. It is their prerogative to increase salaries based on their profits," he said. If the state electricity regulatory commission approves the tariff hike, consumers will have to pay an additional Rs 0.88 per unit in their electricity bill.
The hike is inevitable as Chief Minister D V Sadananda Gowda had earlier said that price rise was necessary to make up for the expenses of ESCOM. "A 25 per cent hike in salary means at least Rs 5,000 to Rs 18,000 increase in the salaries of around 40,000 employees of all the five ESCOMS. On what grounds has the increase been granted by the government? There is no such thing in the rulebook, now the people will have to bear the burnt," said industry expert M Devi.
"There is a cost escalation involved and we have to make ends meet and so eventually the cost will be passed on to the consumer. There is a long procedure involved and the drafting is based on several cost parameters, which have been considered," said P Mannivanan,managing
director, BESCOM.
Rs1 lakh
The amount a Chief Engineer with an ESCOM draws as salary, including all perks and benefits
Rs 40,000
The amount a lineman with an ESCOM draws as salary, including all perks and benefits
Cost escalation
>>Power tariff is being increased for the past three years, citing demand supply mismatch and escalating electricity generation cost, overlooking the rule that says rates can only be revised every three year
>>In 2009-10, per unit power tariff was Rs 3.90, while in 2010-11 it became Rs 4u00a0
>>Now in the current fiscal (2011- 12), the state plans to increase the price by another Rs 0.88
>>If the proposal is accepted, consumers will have to Rs 4.88 per unit of power
