Mescom proposal on power tariff revision opposed

The company proposed a hike in tariff by an average of Rs 1.33 per unit

Representatives of farmers, industry bodies and others on Monday asked the Karnataka Electricity Regulatory Commission (KERC) not to hike the tariff after Mangalore Electricity Supply Ltd (Mescom) proposed a hike in tariff by an average of Rs 1.33 per unit.

During a public hearing on power tariff revision by the KERC, chaired by its chairman H M Manjunath, Mescom MD Prashant Kumar Mishra said the annual revenue requirement of Mescom for 2022-23 has been estimated at Rs 4,799.93 crore, which includes Rs 2,858.44 crore towards power purchase, Rs 769.24 crore for operation and maintenance.

With the revenue from earnings estimated to be Rs 4,081.72 crore, there will be a shortfall of Rs 718.21 crore. To bridge the gap, Mescom has proposed an average hike of Rs 1.33 per unit, he said.

He said that owing to the Covid-19 pandemic, industrial production was affected which in turn reduced power consumption.

The MD claimed that most of the revenue generated is spent on the purchase of power, with 76%, followed by employee cost 11%, operation and maintenance expenses 5% and interest 4% and depreciation 4%.

B A Nazeer, representing KCCI, said with the pandemic and lockdowns, MSMEs, who are the backbone of India’s growth, have felt a significant impact and faced severe disruptions.

“MSME sector will completely collapse if the power tariff is hiked. The Escoms should reduce their distribution losses and overheads instead of putting an additional burden on the consumers. The power purchasing cost should be reduced. Pre-paid meter should be introduced for the LT-5 category. The power tariff was revised only six months ago,” he added.

Representatives from the ice plants association demanded a special tariff for the ice plants that are functioning within a 5 km radius of the coastal belt. Out of 210 ice plants in three coastal districts, a total of 185 are functioning.

Ramakrishna Sharma of Krishika Sangha in Udupi urged Mescom to instal metres to IP sets to know the amount of electricity consumed by the farmers.

The domestic tariff should not be hiked, he added.

Sathyanarayana Udupa from Bharatiya Kisan Sangh, Udupi, sought to know whether the hike is necessary when transmission and distribution loss has been reduced to 8.27% from 11.50% in 2015-16.

He urged Mescom to instal meters for IP sets, to ensure that the government funds are not misused.

An SOP on utilising consumer welfare funds should be prepared by the commission, he added.

The consumers also urged KERC not to hike the fixed charges and create awareness among the public on saving energy. In addition, many demanded to strengthen the vigilance squad of Mescom.

The Mescom MD said under the Centre’s Revamped Distribution Sector Scheme (RDSS), smart meter installation will be taken up in government offices, industries and commercial establishments in the first phase under Mescom.

KERC member M D Ravi was present.