Electricity consumers have raised their voices against the proposal by the Hubli Electricity Supply Company (HESCOM) to hike power tariff by 45 paise per unit at the Karnataka Electricity Regulatory Commission (KERC) public hearing here on Monday.
KERC Chairman Shambu Dayal Meena chaired the meeting and KERC members M.D. Ravi and H.M. Manjunath were present.
Consumers representatives said that HESCOM has proposed a hike in power tariff without complying to the directions of the KERC of reducing power transmission and distribution loss. Therefore, it has no morality to appeal for revision of power tariff, they said.
KCCI representative A.S. Kulkarni and others said that it has become an annual ritual for HESCOM to seek revision in tariff and KERC to allow tariff to be increased going by self-attested audit report of the electricity supply companies.
Revision of power tariff is based on supply and demand. However, the State has become self-sufficient in energy production and there is surplus energy with electricity supply companies. Hence, the question of increasing power tariff will not arise, they said. More than 800 MW of surplus energy is being generated.
There is no progress in prepaid meters nor measures taken by HESCOM to contain power theft and energy loss. The UDAYS scheme of the Union government is not implemented and power supplied to irrigation pumpsets is being shifted to genuine consumers, they added.
Mr. Kulkarni said that HESCOM was set up in 2002 and power tariff revision started in 2004. Every year, 55 to 60 objections were being filed by consumers before KERC opposing tariff hike but this year it has reduced to just nine. People are under the impression that there is no meaning in filing objections as KERC is in favour of the electricity supply companies. KERC should take to task HESCOM for not following its directions in power saving and other issues. HESCOM can go to KERC seeking revision only if it adheres to at least 50 % of the directions given by the commission, he said.
Veeranna, a representative of Bharathiya Kisan Sangha from Gadag, said that HESCOM could reduce power tariff if its vigilance wing was activated and power leakage was prevented. The urban local bodies and town panchayats owe huge bills and HESCOM, which has failed to recover dues, is punishing consumers by increasing electricity tariff, he said.
Madhav Hegde from Karwar displaying some documents on power leakage said that as per government documents, electricity supply companies are incurring 27 % energy loss due to leakages. The BDA alone has defaulted ₹ 300 crore. All the shortcomings of HESCOM cannot be shifted to the consumers.
The quality of transformers is not up to the mark and corruption charges against officials showed HESCOM in poor light, he said. Unless HESCOM brings in transparency in administration and makes its office corruption-free, it cannot go to consumers asking them to pay more, he added.
R.G. Joshi from Uttar Kannada said that he was paying power bill of ₹ 250 four years ago and today, he is getting a bill of ₹ 800, though he is not using additional electricity gadgets or appliances. As KERC is allowing HESCOM to increase power tariff, the poor consumer is forced to spend extra money, he said.
Mallangoudar Patil from Dharwad taluk said that HESCOM is facing severe staff shortage and hence, services have been affected. There are no linemen in rural areas and for a transformer change, it takes a minimum of one month. KERC should not allow HESCOM to increase tariff till services given becomes satisfactory.
Revision proposal
HESCOM Managing Director Sundaresh Babu submitted before the KERC that the annual revenue target is pegged at ₹ 9,954 crore. Hence, it has become inevitable to increase power tariff by 45 paise per unit.
The revenue target has sailed northward and going by the present tariff, HESCOM will earn a revenue of ₹ 9,270 crore and the deficit amount will be ₹ 683.95 crore. HESCOM is supplying 8,953 million units to 52 lakh consumers of which 411 million units are given for commercial use, 265 million units for industrial use, 1,297 million units for domestic use and the maximum 4,727 million units for irrigation pumpsets.
For 2020-21, HESCOM is expected to spend ₹ 7,405 crore for power purchase at ₹ 4.49 paise per unit, ₹ 1,180 crore for maintenance and distribution, ₹ 280 crore, interest and other financial expenditure pegged at ₹ 654 crore, ₹ 50 lakh for consumer awareness programmes taking the total amount to ₹ 9,521 crore. Last year’s deficit is ₹ 759 crore and other income deducted is ₹ 326 crore. Hence, the total revenue target for this year is ₹ 9,954 crore. Transmission loss was as high as 25.06 % in 2008 and due to the effective measures taken, HESCOM has brought down transmission loss to 14.40 % which is well within the limits of the direction given by KERC. Under the IDPS scheme, HESCOM was given a target for electrification of 91,264 new households and it has completed electrification of 80,110 households. The remaining will be met before March 31, he said.
