KERC hearing on power tariff: CESC wants Rs. 2.27 hike per unit; consumers say no

KERC hearing on power tariff: CESC wants Rs. 2.27 hike per unit; consumers say no

February 17, 2022

Mysore/Mysuru: The annual exercise of public hearing by Karnataka Electricity Regulatory Commission (KERC) before the power tariffs are hiked was held this morning at the Deputy Commissioner’s Office Court Hall. The Chamundeshwari Electricity Supply Corporation (CESC) has sought a hike of Rs. 2.27 per unit in the existing rates.

The hearing was held under the leadership of KERC Chairman H.M. Manjunath, member M.D. Ravi and Secretary Rekha. Stakeholders from Mysore Chamber of Commerce and Industry (MCCI), Mysore Industries Association (MIA), KIADB Industrial Area Manufacturers’ Association (KIAMA), Hebbal Industrial Estate Manufacturers Association (HIEMA), Karnataka Small Scale Industries Association (KSSIA) and representatives of consumers and farmers were present.

The hearing began with CESC Managing Director Jayavibhavaswamy saying that for 2022-2023 financial year, there is a shortfall of Rs. 1,543 crore.

To set right losses, the CESC needs to increase tariffs up to Rs. 2.27 per unit. He outlined various reasons for the revenue loss. CESC has jurisdiction over Mysuru, Mandya, Chamarajanagar, Hassan and Kodagu regions.

Responding to the presentation made by the CESC MD, President of MIA and former MLA Vasu took strong objections against the CESC appeal of increasing power tariff. He and MIA Secretary Suresh Kumar Jain said that already 30 percent of the industries, especially in the small-scale sector have closed due to COVID and high raw material cost.

“By proposing an unreasonable hike of Rs. 2.27 per unit, the CESC is killing the industries. This is an anti-industry move and the KERC must not bow to the pressure. The revenue collection system of CESC is inefficient and there is no control over electricity pilferage. Consumers and industrialists are being penalised for their inefficient and highly corrupt attitude,” they charged.

K. Ravindra Prabhu, Vice- President of KIAMA, argued against the tariff hike and said that in the next six months, many more industries will shut shop as there is no support from the Government. “In addition, Government agencies like CESC that should actually serve people are hell-bent on making profits, burdening the hapless consumers. In fact, this public hearing is just a waste of time as Corporations like CESC will get their way and KERC cannot do much in this regard,” he opined.

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Every year, Electricity Supply Companies approach the KERC for a revision of tariff. Later, the KERC sends a proposal to the State Government with its tariff hike recommendations.

ONE COMMENT ON THIS POST To “KERC hearing on power tariff: CESC wants Rs. 2.27 hike per unit; consumers say no”

  1. Sachin says:

    Perhaps, the news report was not complete?
    1. What was the reason for the shortfall(loss) of 1,543 crore?
    2. When the losses started to creep in, what steps were taken? By whom? Was it effective?
    3. If not why? If yes, how much?
    4. Even assuming if there is a hike to overcome this shortfall, what is the assurance or guarantee that there will be no shortfall (losses) in the future?
    5. Who all are accountable and responsible for this situation?
    6. What is being done about it?
    7. Why should consumers compensate and continue to support inefficiency, incompetence, inability etc?
    8. What steps are being taken to make it effective and efficient?
    9. What are the lessons learnt from the current year?
    10. What will be done differently, what bad practices will be stopped, what new initiatives will be taken up to avoid and prevent this from the future?
    11. If consumers keep paying for the losses incurred, would not the honest, effective, efficient employees feel demotivated and demoralised (because there is no reward or recognition for their responsible work)?
    Perhaps another news report can be published in the next few days? Newspapers should not the publishing the handouts and press releases issued by authorities. They should raise questions, be analytical and represent the people and their concerns?


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