Generate revenue from other sources, not by hiking power tariff: KERC chairman

Hubballi: Increasing electricity tariff is not the solution to overcome the losses, electricity supply companies should generate revenue from other sources and stop unnecessary expenditure, said Karnataka Electricity Regulatory Commission (KERC) chairman P Ravi Kumar.

Chairing the KERC Public Hearing meeting at the Hubballi Electricity Supply Company Limited (HESCOM) corporate office at Navanagar in the city on Wednesday, Ravi Kumar was replying after the HESCOM proposed Rs 0.57 tariff hike.

“If we go on hiking the tariff, it will be a big burden on the consumers. The HESCOM should prevent distribution losses, restrict unnecessary expenditures, and prevent losses, but not increase tariffs on a regular basis,” he advised the HESCOM officials, and also noted that soon they will start a ‘consumer advocacy cell’ to address consumer grievances.

Solar power issue

Many consumers said, they have Solar Roof Top Photo Voltaic (SRTPV) to produce electricity and they are exporting it to HESCOM. Though they generate more units than they consume, it is not profitable for them as the HESCOM has been continuously increasing the tariff rate and Fixed Charge (FC).

Wing Commander (retd) H K Bilgi said, he is exporting electricity to HESCOM, and importing power for his household consumption. There is no transparency in the bill, which is manually generated, and there is a lot of confusion in the bills. The bill format is wrong, which needs to be rectified, he advised.

KERC chairman P Ravi Kumar agreed that the bill format was wrong, and asked HESCOM to rectify the issue.

Vijayapura consumer M C Kori said, he generates solar power and exports it to HESCOM, but he is being charged 9 per cent sales tax. “For producing green energy and helping HESCOM, I am being charged. When questioned, I get a refund after several months,” he complained. The KERC chairman asked the HESCOM to rectify the issue.

Reduce tariff

M R Patil, a farmer from Kagwad of Belagavi district said, they draw water for irrigation from Krishna River, which is about 30 km from their village. To get 24 hours three-phase power supply for their IP sets, they installed the ST line by spending Rs 1.15 crore from their co-operative farming society.

During the installation the power tariff was Rs 0.60 per unit, now it has increased to Rs 3.50, which is burdening them. They are not getting enough price for their agricultural produce to pay electricity bills.

“Maharashtra is supplying power at the cost of Rs 1.10 per unit, but here in the state we are being charged Rs 3.50. We demand the HESCOM and the state government to reduce the power tariff to Rs 1.10 per unit,” he said.

Industries not coming

Adding his voice on increased power tariff, Karnataka Chamber of Commerce & Industry (KCCI) industrial development committee chairman Nagaraj Yaligar said, due to the huge power tariff, many industries are not coming forward to invest in the state, and they are shifting to Maharashtra and Tamil Nadu, where they get power at a cheaper rate.

Electricity is a raw material for all industries, and they spend 15-20 per cent of their total cost on power. Hence, the ESCOMs should reduce the power tariff, if not, the existing industries will also shift to other states, he noted.