Mangaluru: Consumers oppose MESCOM's proposal to increase power tariff by 70 paise per unit


Pics: Spoorthi Ullal

Daijiworld Media Network - Mangaluru

Mangaluru, Feb 18: Consumers and industrialists have strongly opposed Mangalore Electricity Supply Company (MESCOM)'s proposal to increase the power tariff by 70 paise per unit for the fiscal year 2025-26. The opposition was voiced during a public hearing held on Tuesday.

The hearing, chaired by Karnataka Electricity Regulatory Commission (KERC) chairman P Ravikumar, focused on MESCOM’s multi-year tariff revision plan. This is the first time the company has submitted such a proposal, which includes tariff hikes of Rs 0.70 per unit for 2025-26, Rs 0.37 for 2026-27, and Rs 0.54 for 2027-28.

MESCOM managing director R Jayakumar presented the tariff revision, arguing that the current rates were insufficient to cover operational costs. However, consumers strongly objected to this justification. According to Jayakumar, MESCOM's revenue requirement for 2025-26 is Rs 6,329.29 crore, while total expenditure stands at Rs 5,997.37 crore, resulting in a revenue deficit of Rs 478.48 crore. The projected energy sales for the year are 6,859.29 mega units, with a cost of supply at Rs 9.23 per unit, compared to the current tariff of Rs 8.53 per unit. For 2026-27, MESCOM anticipates total expenditure to reach Rs 6,446.20 crore and a revenue requirement of Rs 6,430.89 crore, with a revenue deficit of Rs 270.17 crore.

Thirthahalli MLA Araga Jnanendra accused MESCOM of collecting a development fee from individuals who installed solar energy systems under the central government's Surya Ghar scheme. He argued that MESCOM should encourage the adoption of solar energy instead of imposing additional charges. He also raised concerns about irregularities in outsourcing contracts.

Venkatagiri from the Consumers Forum criticized the inefficiency of the 1912 helpline, while Ramakrishna Bhat from Bharatiya Kisan Sangh Udupi suggested that MESCOM should focus on reducing distribution costs rather than increasing tariffs. Ravindra Gujjarabettu called for measures to curb electricity wastage in offices and public spaces. Additionally, representatives from the ice plant industry urged an increase in the Time of Day (ToD) concession from Rs 1.

 

 

 

  

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Comment on this article

  • Yogi, Mangalore

    Tue, Feb 18 2025

    This is tyranny from a government that is expected to rule for five years. What happens if the present government is unable to come to power at the end of it's tenure ? Nothing but more burden to the people of state.

    DisAgree Agree Reply Report Abuse

  • Jossey Saldanha, Raheja Waterfront

    Tue, Feb 18 2025

    Why no one is taking care of 4.5% Inflation ...

    DisAgree [1] Agree Reply Report Abuse


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Title: Mangaluru: Consumers oppose MESCOM's proposal to increase power tariff by 70 paise per unit



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