Industry flays proposed power tariffs in Mysore

The Mysore-headquartered Chamundeswari Electricity Supply Company (CESC) has proposed to increase power tariff by 51 paise per unit.

The raise is to cover all its consumers, including industries coming under its jurisdiction in the five districts of Mysore, Mandya, Chamarajanagar, Kodagu and Hassan. Consumers have 30 working days to file objections to the CESC proposal filed before the Karnataka Electricity Regulatory Commission (KERC) from the date of its publication on August 8.

The CESC said in its application that there was a revenue deficit due to a “mismatch between the revenue receipts from the existing tariffs”. Comparing figures of 2007-08 and 2009-10, it said the revenue deficit had gone up to Rs 258.80 crore from Rs 5.16 crore over the three-year period. The estimated revenue receipts for 2009-10 was Rs 1,370.14 crore and revenue requirement was Rs 1,628.90 crore, while it was Rs 1,112.76 and Rs 1,117.92 crore, respectively.

Similarly, the average cost of power supply was Rs 4.43 per unit in 2009-10, while the realisation was Rs 2.60 only. In 2007-08, it was Rs 3.45 and Rs 2.55, respectively. Even after the state government subsidy was indicated at Rs 346 crore, there would be a revenue shortfall of Rs 258.80 crore in FY10. “Hence, the revision of tariff is essential. Therefore, an increase in tariff of 51 paise has been proposed for all consumers,” it said, while filing its annual performance review of FY 09 also.

Taking exception to the tariff hike, the Mysore Industries Association (MIA) charged that CESC had suffered heavy loss by purchasing power at high cost. It was trying to pass this burden on to consumers, although hydel power production had reached the optimum levels as the reservoirs in the state were overflowing.

When CESC made a proposal for a similar tariff hike last time, the KERC had rejected it. On the other hand, it had reduced the power tariff. Instead of implementing the KERC order, CESC had appealed to the Central Electricity appellate Authority against it.

“It is unfortunate that CESC had gone on an appeal instead of implementing the consumer-friendly KERC order,” MIA general secretary Suresh Kumar Jain criticised today.

“If the electricity rates are revised as proposed by the CESC at a time when industries are facing global recession and are additionally burdened with irregular power supply, industries will have to be shut down once and for all,” he said.

MIA is gearing up to file an objection to the CESC proposal, Jain said and appealed to all the consumers, including industry representatives, power supply experts and advocates, to give their input so that the association could challenge the proposal before the KERC, before September 12.

He also criticised CESC for filing its application only in English and not bothering to file it in Kannada. Appealing to the KERC not to take cognisance of the CESC application and desist from calling public objections, he urged the Kannada Development Authority to take action against CESC for failing to implement Kannada in its administration effectively.