Citizens overwhelmingly objected to an increase in electricity rates and instead asked the Bangalore Electricity Supply Company (Bescom) to improve efficiency, power supply quality, regularise unauthorised irrigation pumpsets, and get their accounts audited by recognised chartered accountants.
Bescom has submitted a proposal to the Karnataka Electricity Regulatory Commission (KERC) for a flat hike of 82 paise for all categories of consumers. Over 20 objections were submitted by various organisations during the public hearing conducted by KERC on Monday.
T.V. Mohandas Pai, former director of Infosys who represented the not-for-profit organisation B.PAC, said Bescom’s plea should not be allowed as the power utility has inefficiently purchased power at excessive cost. He also said Bescom has a poor collection efficiency, debt of ₹1,173 crore, apart from failing to control line losses within 12.75% limit.
The proposal was also opposed by Bangalore Water Supply and Sewerage Board (BWSSB), which said that it could not bear the burden of increased pumping costs as its own water tariff has not been hiked since 2014. BWSSB depends on Bescom for supplying water to nearly 85 lakh consumers.
For industry representatives, poor quality of power supply was a problem. Shrinath Bhandary from Karnataka Small Scale Industries Association said Bescom’s unscheduled load-shedding and frequent interruptions have caused “unbearable loss to industries.” “Many high energy consuming industries in the State, such as foundries, forging shops and steel mills, are under serious threat of closure. The present tariff for small scale industries should be brought down,” he said, even adding that Bescom should be privatised.
Lakshmisha, secretary of Laghu Udyog Bharathi - Karnataka, pointed out the disparity in figures as listed in the Kannada and English versions of the tariff hike proposal. “In Kannada, Bescom is seeking 93 paise per unit hike and in English, it is 82 paise a unit. The Average Revenue Realisation (ARR) for 2018-19 in Kannada showed deficit at ₹1,600 crore and in another page, it is ₹1,274 crore. These figures should be audited independently,” he said.
Meanwhile, Bescom justified its move and said there was a 40 paise gap in the average cost of supply and average revenue realised and that the transmission charges to the total purchase cost has increased to 16%. The utility also claimed a 24 paise difference between the approved average power purchase cost and actuals.
‘Power supply in the morning’
The KERC may soon issue an order directing the five electricity supply companies to supply three-phase power to rural areas during the day. Currently, the three-phase power is being supplied at night. Representatives from the Bharathiya Kissan Sangha, Karnataka Pradesh, submitted before the KERC the problems that farmers were facing because of this. KERC chairperson M.K. Shankarlinge Gowda said that he was in the know of the farmers’ problems. “If we get a consensus from farmers across the state, we will issue an order with regard to supply of three-phase power during the day,” he said.
Transformers in apartment complexes
The Bangalore Apartments’ Federation (BAF) has questioned the rationale behind transferring of HT installation (including transformer, LT cables) in an apartment to Bescom after one year of its commissioning.
Muralidhar Rao from BAF said the rules say that maintenance must be carried out by Bescom. “However, we do not have confidence that Bescom will undertake a proper job. There must be a review of the rule that mandates transfer of the installation,” he said.
To this, Mr. Gowda quipped: “Even Bescom will be happy, as it reduces their burden to some extent.”
