Mescom seeks Rs 1.38 hike in tariff

Mescom seeks Rs 1.38 hike in tariff

Mangalore Electricity Supply Company Limited (MESCOM) has sought Rs 1.38-hike in tariff across all categories for the year 2019-20 at the public hearing of Karnataka Electricity Regulatory Commission held in the city on Thursday.

It has justified its demand citing higher power purchase costs and increase in  expenditure in maintenance due to inflation.

Mescom Managing Director Snehal R said the Mescom was expecting a revenue of Rs 3,447.12 crore for the year and the deficit would be Rs 706.39 crore.

“To overcome the deficit, the tariff hike is necessitated. The Mescom is charging Rs 6.64 per unit of electricity while the distribution expenditure incurred is Rs 7.96 per unit. It has sold 5,006.39 million units of electricity in 2018-19 which will be increased to 5,134.92 million units during 2019-20.

She said under ‘Saubhagya Yojane,’ the Mescom will provide electricity connections to 5,716 households in its jurisdiction. As many as 5,509 houses will be connected from the grid while 207 houses will be connected through off grid facility, at an estimated cost of Rs 18.20 crore. Under model sub-division scheme, as per the guidelines of the State government, the Mescom has initiated measures to convert 11 KV and LT lines to underground cables to supply quality power in Attavar sub-division and Shivamogga Nagara sub-division-1.

Loss reduced

Similarly, the transmission and distribution loss has reduced to 11.23% (2017-18) from 11.40% (2016-17). The Mescom which covers four districts-Dakshina Kannada, Udupi, Chikkamagaluru and Shivamogga caters to 23.31 lakh consumers.

Snehal claimed that most of the revenue generated was spent on the purchase of power--Rs 2,508.01 crore (78%), followed by employee cost--Rs 355.68 crore (11%), operation and maintenance expense--Rs 132.99 crore (4%), payment of interest--Rs 133.18 crore (4%) and depreciation--Rs 90.39 crore (3%).

She said that 10,000 unauthorised irrigation pumpsets (IP sets) had been regularised last year and 16,000 IP sets would be regularised this year. All measures will be taken to improve the customer care service centre.

Mescom has already implemented ease of doing business but it will be improved to cater to the needs of the customers, Snehal said.