Daijiworld Media Network – Udupi (SP)

Udupi, Oct 19: District committee of Bharatiya Kissan Sangha, Consumers Forum Udupi, and Udupi District Small Scale Industries Association, have decided to file objections to the proposed tariff hike of 75 paise per unit, proposed by Mangalore Electric Supply Company (Mescom). The objections have to be filed with Karnataka Electricity Regulatory Commission (KERC).

This decision was taken at the end of discussions held on the tariff hike, organized under the aegis of Consumers Forum Udupi on Monday October 18. Kissan Sangha district general secretary, B Satyanarayan Udupa, speaking on the occasion, said that all the five escoms in the state have approached KERC with a request to permit a hike of 75 paise per unit uniformly. “The consumers have to file objections to the proposal before November 4. Mescom needs 600 million units of additional power in view of the setting up of Mangalore Special Economic Zone. Mescom has projected its expenditure at Rs 1,694 crore and income of Rs 1,112 crore, thereby showing a net deficit of Rs 581 crore,” he explained. Mescom says that this shortfall can be covered by Rs 393 crore being received from the government in the form of subsidy, and Rs 188 crore by way of tariff hike.

These escoms have been setting aside 15.5% of the investments as earning on capital, in spite of whether escoms make profit or not. He said that meters have been provided to 93.14% of 18 lac pumpsets functioning in the state, and that the escoms have been cheating the government by claiming full subsidy. Udupa said that the escoms claim subsidy for 3,804 units on an average, for every pumpset, whereas in reality, not more than 2,500 units are used by each of them. “Out of the power bought at the rate of nine rupees per unit, 82% goes to Bescom, and Mescom gets only 8%,” he explained. He also felt that it would be unjust to transfer the loss burden of other escoms to Mescom consumers, as Mescom is faring better in collection of bills and profitability. He urged to convert Mescom into an autonomous body and to subject it to social audit.

Udupi Consumers Forum convener, K Damodar Aithal, and A P Kodancha addressed the meeting. Small Industries Association president, M Chittaranjan Bhat, was present. T Chandrashekhar proposed the vote of thanks.