Consumers oppose Mescom's proposal to hike power tariff

Mangalore, April 3: The 73-paisa hike in power tariff proposed by the Mangalore Electricity Supply Company (Mescom) met with strong opposition from consumer groups at the public hearing here on Tuesday. The decision on the tariff will be announced by the month-end.

Karnataka Electricity Regulatory Commission (KERC) Chairman Srinivasa Murthy speaks at the KREC public hearing held at Deputy Commissioners office in Mangalore on Tuesday. DH?PhotoAt a hearing of Karnataka Electricity Regulatory Commission (KERC) held at Deputy Commissioners office on Tuesday, Bharatiya Kisan Sangha General Secretary Satyanarayana Udupa said that Mescom is not taking any initiatives to control costs.

The average purchase cost of one unit of power is Rs 2.47. However, after adding other costs it shoots to Rs five. “Consumers are made target in case of cost increase but no work is done to decrease the other additional costs,” he said.

He said that Mescom is purchasing power from private companies by paying more than Rs 17 per unit instead of using alternative means. This power was allocated to Bescom. Hence, Bescom owes Mescom Rs 168 crores and the money is yet to be recovered, he said.

Speaking on behalf of Kanara Chamber of Commerce and Industry S S Kamath discussed on the issues industries will face with increase in power tariff. “It is incorrect to go ahead with the tariff hike without showing the audited balance sheets. Mescom has not given details on subsidy granted by the government,” he said and complained that the substation which was supposed to come up at Baikampaddy has not yet come.

District Small Scale Industries President B A Nazeer demanded increase in the subsidy given to use solar power.

Teerthahalli Irrigation Pumpset Users' Association President Narasimha Nayak complained that there is a shortage of 2,000 line men. “The women from the region have applied for the posts but Mescom is not showing any interest in recruiting them,” he said and questioned on the reasons for disparity.

“The strength of executive and assistant executive engineers is more. For 60 subdivisions there are around 80 Assistant executive engineers,” he said and added that there is shortage of linemen and section officers in Mescom.

Karavali Ice Plant and Cold Storage Association President Ashok Kumar requested to consider the ice plant and storing industries as a separte category and give concession.

“Last year around four crore units of power was used but this year only three crore units are used. This is because several industries have shut down. We cannot compete with Kerala and Goa with the price hike,” he said.

In order to cater the consumer requirements, the Mescom has to buy energy from the generators, maintain its distribution system to its optimum level and also have a reliable consumer oriented approach, said Mescom Managing Director Vijay Narasimha.

Increase in power purchase cost, increase in operation and maintenance expenses on account of inflation and increase in interest and finance charges is directly attributable for the increase in average cost of supply, he said.

Mescom has requested the Commission to consider restoration of the cross subsidy compensation and also allow wheeling charges in cash and kind for all open access transitions irrespective of whether it pertains to NCE sources on non-NCE sources.

The cross subsidy surcharge is required to sustain the deficit cost in providing power supply to other subsidised categories like agricultural pump sets and others, he said.