KERC chief draws flak for rise in tariff

The Karnataka Chamber of Commerce and Industry (KCCI), Hubli and Gadag Chamber of Commerce have urged the Karnataka Electricity Regulatory Commission (KERC) to reject the proposal of the Hubli Power Supply Company (Hescom) to raise the power tariff by 80 paise per unit.

The chambers made their plea to KERC at a public hearing here on Thursday. KCCI President of Hubballi Vasant Ladva said, the situation would not have become so grave had Hescom maintained financial discipline. He alleged that the Hescom had violated norms in spending and power distribution and pointed out that the Comptroller and Auditor General (CAG) has raised objections in this regard.

More than Rs 222 crore could be saved if transmission losses were checked. Hescom would have saved Rs 954 crore in all, including power purchase if it had taken steps to limit the spending and contain corruption. Hescom should also have taken steps to ensure that interest payable to the Karnataka Power Corporation was either reduced or waived.

“Power tariff hike would affect four million customers and ruin small industries. Hence, the proposal to compensate Hescom’s Rs 756-crore losses should be rejected,” he argued.

R K Ranjrej of Gadag said while the Union government was encouraging the manufacturing sector under ‘Make in India’ project, Hescom’s decision was a ‘shock’ to the industries. KERC should not allow power tariff as Hescom had failed to reform administration and bring down expenditure, he said.

Aravind Pai from Kumta alleged KERC chairman M R Srinivas Murthy had failed to address customers’ grievances submitted along with affidavits six years ago. In a specific case when an electricity work worth Rs 5 crore was awarded through tender for Rs 37 crore, KERC failed to respond despite a complaint being filed in this regard, he alleged.