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MANGALORE, Oct 16 (The Hindu): Representatives of different organisations, at a public hearing here on Thursday, opposed Mangalore Electricity Supply Company’s proposal to increase power tariff by 51 paise per unit across the board.
The Karnataka Electricity Regulatory Commission (KERC) conducted the hearing. Consumers said that as the Mescom had been making profit there was no need for hike in tariff.
According to the KERC, it has received 6,284 objections from consumers under the jurisdiction of Mescom opposing the proposal. Chairman of the Commission K.P. Pandey and its members V.G. Hiremath and Srinivas Rao listened to the objections.
K. Jayarama Alva, financial adviser, Mescom, justified the company’s proposal stating that like any other commodity, the cost of electricity also needed upward revision consequent to increase in the cost of dependent factors. He said that the company had not hiked the tariff for the past five years.
Mr. Alva said that the revenue gap of Mescom for 2009-10 was Rs. 417.15 crore.
The revenue from existing tariff was sufficient to meet the proposed annual revenue requirement and hence there was revenue deficit.
Mescom was proposing for revision of tariff to meet the unmet gap. The State Government has allocated Rs. 166.00 crore as tariff subsidy to the company for 2009-10. The revenue gap after subsidy is Rs. 251.15 crores.
The company has proposed a uniform hike of 51 paise per unit for all category consumers under different slabs to bridge this deficit.
Representing the Kanara Chamber of Commerce and Industry (KCCI), its former president S.S. Kamath said that the company, while making its submission before the commission with regard to annual revenue requirement and expected revenue collection, has adopted a practice which appears to be to discount the income and inflate the expenditure. The expenditure inflated is not credible, he alleged.
He gave details regarding how the company has projected expenditure in excess of the actual expenses.
Representatives of Kanara Small Industries Association (KSIA), Bharaitya Kisan Sangha (BKS), Sahyadri Coffee Growers’ Association, Udupi District Krishika Sangha, Power Consumers’ Federation also appealed to the Commission not to allow the company to increase the tariff.
Some of them alleged that the company had fixed meters to irrigation pumpsets and consumers under Bhagyajyothi and Kuteera Jyothi schemes. But it was not issuing bills regularly. In such circumstances, they wanted to know how the company could realise its actual revenue and make proper projection of expected revenue collection and expenditure for future years. Hence its demand for hike in tariff is not valid, they said.
K. Srinivasa Bhat, general secretary, Udupi District Krishika Sangha, appealed to the commission to direct the company to drop imposing tariff on the basis of urban and rural classification.
Vijayakrishna, general secretary, BKS, Dakshina Kannada, alleged that the company was not giving details regarding transmission loss in rural areas.
It was giving details regarding of transmission loss in urban areas.
Mr. Krishna Bhat of KSIA suggested that the company purchase power in low rate during night time. It has not done its energy audit properly. Energy audit should be done region-wise to find out loopholes.
The hearing will continue on Friday.