Representatives of various organisations have appealed to the Karnataka Electricity Regulatory Commission (KERC) to reject Bangalore Electricity Supply Company (Bescom)’s plea for hike in energy cost by Rs 0.90 per unit for all categories of consumers.
Participating in a hearing on tariff revision sought by Bescom on Monday, these representatives contended that there is a considerable scope for reduction in various costs and also improving efficiency to offset the proposed additional expenditure by Bescom. “Hence the demand for hike in tariff is unjustified and it should be rejected”, they argued.

Federation of Karnataka Chamber of Commerce and Industry’s Energy Committee Chairman M G Prabhakar argued that Bescom should have clearly indicated steps taken by it for improvement of efficiency since the date of previous order which could be ultimately transferred to the consumers. “In the absence of any specific gains, the directions are more a matter of procedure”, he remarked.

Cost of service
He also took exception to non-filing of details pertaining to cost of service by Bescom. “Despite the KERC order, no Escom has worked out the cost of service”, he observed.

Y V Ashwathnarayana of Consumer Care Society argued that instead of raising the tariff proposed by Bescom, the KERC should reduce it to the extent of Rs 265 crore which is a surplus left with it for the FY 2008. He said while Bescom is claiming a revenue shortfall of Rs 1439.48 crore, the savings expected under power purchase cost, employee cost, lower distribution loss and interest and finance charges worked out to Rs 1452 crore.
“If Rs 361 crore subsidy due to Bescom is also taken into account, it will be left with the net surplus of Rs 269 crore. Hence there is no justification for tariff hike”, he submitted.

‘NO POLITICS PLEASE’

KERC Chairman K P Pandey has bemoaned political interference in the functioning of Escoms in the State. Pandey asserted that this did not augur well either for the Escoms or the State. He said he had learnt recently that the Managing Director of Mangalore Electricity Supply Company (Mescom) had to struggle for more than a year and half to get a case registered for power theft. “Even the efforts made by the Principal Secretary, Energy, and KPTCL MD failed to get the case registered for a long time. Finally the KPTCL MD had to use his clout with a DIG to get the case registered. If this is the state of affair in Escoms, it does not augur well”, he remarked.