Sun Feb 23 13:32:42 UTC 2025: ## GESCOM’s Tariff Hike Sparks Outrage Amidst Unpaid Government Subsidies
**Kalaburagi, Karnataka, February 23, 2025** – The Gulbarga Electricity Supply Company Limited (GESCOM) is facing public backlash after proposing a power tariff increase to offset its financial losses. Consumers accuse the state-owned company of burdening them instead of pursuing significant outstanding subsidy payments from the Karnataka State government.
GESCOM’s Annual Performance Review (APR), submitted to the Karnataka Electricity Regulatory Commission (KERC) in November 2024, revealed a widening gap between revenues and expenditures. However, information obtained by *The Hindu* indicates that the government owes GESCOM a staggering ₹3,566.47 crore, including ₹1,969.94 crore in accumulated interest, for power supplied to farmers’ irrigation pumpsets over the past 18 years.
The government’s failure to pay these subsidies has steadily increased GESCOM’s debt. While some payments were made in previous years, significant arrears remain. For instance, outstanding dues stood at ₹1,596.53 crore by December 2024.
Energy expert and activist Deepak Gala criticized the situation, stating that the Electricity Act 2003 mandates advance subsidy payments from the government and allows for interest charges on overdue amounts. He further condemned GESCOM’s decision to write off ₹1,057.52 crore in subsidy dues accumulated until 2015-16, calling it financially irresponsible and legally questionable. GESCOM also waived ₹326.63 crore in interest owed by local governing bodies.
This pattern of writing off government debt while raising consumer tariffs has ignited public anger. Critics argue that GESCOM is unfairly shifting the burden of the government’s fiscal irresponsibility onto ordinary citizens, particularly those already struggling with rising living costs. The situation raises serious concerns about the financial stability of GESCOM and its potential impact on consumers’ trust in the power supply company.
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