Power Tariff Hike Consumers say NO

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 Office this morning, representatives of various bodies including Mysore Chamber of Commerce and Industry, Mysore Industries Association, Hebbal Industrial Manufacturers’ Association and domestic consumers sought the dismissal of the CESC petition that seeks a hike of Rs. 1.48 per unit across categories. Citing operational and backlog losses, the CESC, along with other electricity supply companies in Karnataka has sought Rs. 1.48 increase per unit across slabs. Following this, the KERC conducted the public hearing today to elicit opinions and record views. The hearing was conducted by KERC Chairman M.K. Shankaralinge Gowda and assisted by members D.B. Manivel Raju and H.D. Arun Kumar. The KERC will decide on the tariff once it completes the hearing across Karnataka. In his power-point presentation, CESC Managing Director Kiran projected a loss of Rs. 962.93 crore in 2017. Losses incurred out of regulatory assets, backlog loses and overall shortage is hampering the function of CESC. About 50 per cent of the power purchased by CESC was hydel-based and there is an acute shortage in its supply owing to monsoon failure and hence the hike is imperative, he said. Opposing the hike, Sudhakar S. Shetty, Vice-President of Federation of Karnataka Chamber of Commerce and Industries (FKCCI) said that the common man and the industries are already overburdened with demonetisation and Goods and Services Tax. “Added to this, you are increasing power tariff, burdening all of us,” he said. Ravindra Prabhu, Vice-President of KIADB Hebbal Industrial Area Manufacturers’ Association said there was a lacunae in the long-term power purchase planning, and power is purchased only during distress when the demand exceeds supply and consequently the rates are high. “The tariff hike is unjust and the losses are due to the mismanagement of CESC authorities who have not even bothered to conduct a service audit,” he said. Suresh Kumar Jain, Secretary of Mysore Industries Association, made a strong plea to KERC to end the practice of passing on the burden of cross-subsidy to industries. “Industries are not commercial entities and generate jobs and contribute to GDP growth. The power tariff hike will hit all medium and small industries hard,” he opined and added that small industries must be supplied power under LT-5 subsidised category.