KERC holds public hearing in city: Consumers say NO to power tariff hike

Mysore/Mysuru: Power consumers cutting across various categories have urged the Karnataka Electricity Regulatory Commission (KERC) to reject the appeal filed by Chamundeshwari Electricity Supply Corporation (CESC) for a hike in power tariff.

At a public hearing organised by the KERC at the Court Hall of the Deputy Commissioner’s (DC) Office this morning, representatives of various bodies including Mysore Chamber of Commerce and Industry (MCCI), Mysore Industries Association (MIA), KIADB Industrial Area Manufacturers’ Association (KIAMA), Hebbal Industrial Estate Manufacturers Association (HIEMA) and domestic consumers sought the dismissal of the CESC petition that seeks a hike of 130.9 paise (Rs. 1.30) per unit across categories.

The CESC has proposed an increase of Rs. 15 in fixed rates of all LT consumers (individual houses, shops, small offices and smaller manufacturing units) and Rs. 30 hike in fixed rates for HT consumers (bulk purchasers of electricity like industries, big manufacturing units, big offices, Universities and hostels).

CESC Managing Director Manohar M. Bevinamarad said that Rs. 6,024.12 crore is needed for 2021-2022 financial year and there is a shortfall of Rs. 1,005 crore. To set right the losses, the CESC needs to increase the tariffs up to 144.65 paise (Rs. 1.44) per unit. 

CESC’s social responsibility questioned

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. “Where is your social responsibility in this time of pandemic and you have resorted to fleece consumers. All the industries are dying and the power tariff hike will be the final nail in the coffin,” he said. 

Terming the hike sought as ‘unjustified’ for small scale industries, he argued that they are subjected to load shedding and unscheduled interruptions, resulting in loss of man hours and production. Vasu urged the KERC not to yield to CESC demands and retain the existing tariff structures in the larger interest of power consumers. 

K. Ravindra Prabhu, Vice President of KIADB Industrial Area Manufacturers Association argued against the petition filed by CESC. “It is an anti-industry, anti-people and unjustified move. CESC has been using the revenue collection from consumers to pay the interest burden of capital expansion and it has proposed to purchase energy at exorbitant rates as high as Rs. 8.51 to Rs. 12.81 per unit from its own and Central Government power-generating companies,” he alleged.  

Monopolistic business 

An upward revision, if granted, will only result in large scale closure of industries which are already reeling under recession, throwing out a large number of employees to streets. “Consumers have no choice of getting electricity from any other source due to the monopolistic nature of this business. The maladies of CESC are entirely due to the total mismanagement and for this, industries and common man cannot be victimised,” he said. 

KERC Chairman and retired IAS Officer Shambhu Dayal Meena, accompanied by Members M.D. Ravi and H.M. Manjunath, heard the power consumers. KERC Directors Prabhakar Rao, H.M. Uma and Secretary Rekha were present.  

Every year, Electricity Supply Companies (ESComs) have to approach the KERC for a revision of tariff. Once the petitions are received from all ESComs, the KERC fixes the date for public hearings. Today, the hearing was held in Mysuru region for consumers of Mysuru, Mandya, Chamarajanagar, Hassan and Kodagu.  KERC will send a proposal to the State Government with its recommendations after completing all the public hearing of other ESComs.