Thiruvananthapuram: After KSRTC, the Kerala State Electricity Board (KSEB) is also heading towards a similar crisis, with pension distribution at risk of disruption.
The issue will escalate if the Board fails to raise Rs 24,000 crore in its Master Trust to meet pension obligations for the next 50 years, potentially disrupting employee pension payments and retirement benefits.
If the state government does not intervene soon, the Board may be forced to increase the power tariff by at least Rs 4 per unit in stages to address the shortfall. A violation of the conditions set in a tripartite agreement between the state government, KSEB, and the union of KSEB employees has contributed to the current crisis.
The agreement concerning the distribution of pensions to KSEB employees was framed after KSEB transitioned into a company. Currently, pensions for retired employees are distributed from the Board's monthly revenue.
If the Parliament ratifies the Electricity Amendment Bill, which aims to create a competitive market in power distribution, other companies may also expand their operations into Kerala. The bill seeks to amend the Electricity Act of 2003, which regulates the power sector in India and allows consumers to choose between multiple service providers in the same area.
According to N T Job, Organising Secretary of the KSEB Pensioners Collective, the Board's revenue will drastically fall if the government-run company loses its monopoly over Kerala's power distribution, further threatening pension distribution.
Earlier, Power Minister K Krishnan Kutty requested the Finance Department to continue allocating the electricity surcharge collected by KSEB from consumers to the Pension Master Trust. However, the department dismissed this request.
