Consumers oppose power tariff hike proposal

Mysore/Mysuru: Power consumers from Industrial, domestic and other sectors strongly opposed the CESC’s  (Chamundeshwari Electric Supply Corporation) proposal for a steep power tariff hike (68 paise per unit), at the KERC (Karnataka Electricity Regulatory Commission) public hearing held at the Deputy Commissioner’s office here this morning.

Soon as the KERC Chairman Shambu Dayal Sharma initiated the proceedings, CESC Managing Director Dr. Gopalakrishna presented a 30-minute power-point presentation on the functioning, activities, services, etc., of the State-run power company. Stating that CESC needed a revenue of Rs.5,183.92 crore for its functioning and administrative needs for the year 2020-21, Dr. Gopalakrishna said that at present, the CESC has estimated its earnings at Rs.4708.42 crore, which means a shortfall of Rs.475.50 crore in revenue target.

Pointing out that CESC is selling 6956.12 million units of power annually on an average, he urged the KERC to effect a tariff  hike of 68.36 paise per unit and also a hike in fixed rates, across all categories of power consumers (LT, HT, etc,), in order to make up for the shortfall of Rs.475.50 crore. 

But the CESC’s proposal was stiffly opposed by Industrial bodies and other power consumers.

Karnataka Industrial Area Manufacturers Association (KIAMA) Vice-President K. Ravindra Prabhu said that the CESC’s proposal for a tariff hike was not only unscientific, but also unnecessary. 

Giving some tips on reducing power production costs, Prabhu appealed the KERC to reject the CESC’s proposal for tariff hike.

Srinath Bhandari, Chairman, Energy Committee, Karnataka Small Scale Industries Association (KASSIA), strongly objecting to the tariff hike proposal, said there is considerable scope for reduction in power production cost and improving efficiencies that can set off the proposed additional expenditure of CESC. Therefore, the KERC should outrightly reject the CESC’s proposal, he urged.

Mysore Industries Association (MIA) President and former MLA Vasu, who also strongly opposed the hike, said that the proposed hike was unwarranted at a time when Small Scale Industries were battling for survival. Maintaining that any hike in power tariff would be a huge burden for the already struggling industrial sector, he said that power supply companies should work out plans for cost reduction, instead of burdening the consumers.

KASSIA office-bearers Manjunath and Satish submitted a memorandum to the KERC Chairman opposing the CESC’s  power tariff hike proposal. 

KERC Members H.M. Manjunath and M.D. Ravi, CESC Technical Director Manjunath, Chief Engineer (in-Charge) Chandrasekhar, Superintending Engineer Munigopal Raju and others were present.

About 50 power consumers from across all sectors, including domestic, attended the hearing.