GESCOM’s demand to revise power tariff opposed

The Hyderabad-Karnataka Environment Awareness and Protection Organisation (HKEAPO) has opposed the plea made before Karnataka Electricity Regulatory Commission (KERC) by GESCOM for the revision of the power tariff for both commercial and domestic consumers and charged that GESCOM was transferring the burden of loss of power, high cost power charge and other financial irregularities on the consumers.

HKEAPO president Deepak Gala in a petition filed before the KERC opposing the demand made by the GESCOM for the revision of power tariff said that the GESCOM’s energy loss continued to be high at 18.10 per cent as against the approved distribution loss of 16.5 per cent by the KERC. The GESCOM could have saved at least ₹52.85 crore by way of keeping the energy loss at 16.5 per cent. Mr. Gala charged that the GESCOM had wantonly shown the energy loss at the lower side and claimed that an estimated 55 per cent of the total sale energy by the GESCOM was unmetered.

He said as per the admission made by the GESCOM in its application, 675 out of the total 1595 feeders had recorded Transmission and Distribution loss ranging from 20 to 39 per cent, indicating very high energy loss in 42 per cent of the feeders.

Accusing the GESCOM of purchasing the power at a very high cost, Mr. Gala said that GESCOM has admitted that it had purchased 0.95 million units of power from Jurla Hydro Electric scheme at the rate of ₹51 per unit and paid a total cost of ₹4.95 crore. The GESCOM had also violated the conditions of the KERC on short-term power purchase and exceeded the cost of ₹4.50 per unit stipulated by the KERC. The GESCOM had purchased 467.42 MU of power on short term basis by paying ₹ 235.81 Crore where as the actual cost should have been ₹210.39 crore if the cost per unit was limited to ₹4.50. The GESCOM had paid an excess of ₹25.47 crore and this was now being shifted to the consumers.

Mr. Gala also pointed out that the KERC had earlier rejected the application of the GESCOM to the KERC for recovery through tariff the payment of ₹262.49 crore to the Pension Trust (P & G Trust). The KERC had said that this amount should be paid by the state government and cannot be passed on the consumers. Despite this rejection, the GESCOM had included this amount in the application now for the fresh revision of the tariff.

Besides not claiming the ₹915.2 crore as interest due from the State government for the delay in clearing the subsidy payment, it had also failed to collect the outstanding arrears and interest from the IP set consumers to the tune of ₹1218.07 crore.