Dues from electricity consumers have mounted to over Rs 6,000 crore in Karnataka, a latest CAG report has revealed.
“The dues from consumers increased from Rs 3,998.48 crore in 2006-07 to Rs 6,378.20 crore in 2010-11,” according to the performance review of power distribution utilities of Karnataka by CAG, tabled in the just-concluded session of the legislature.
Further, an amount of Rs 217.61 crore was due from permanently disconnected installations. It noted that electricity supply companies (Escoms) are required to file expected revenue from charges with Karnataka Electricity Regulation Commission (KERC) each year 120 days before the commencement of the subsequent financial year.
Escoms filed tariff review petitions belatedly during 2009-10 and 2010-11. “This had resulted in delayed implementation of tariff orders. Timely filing of tariff review petitions would have resulted in generation of additional revenue of Rs 941.08 crore,” the CAG pointed out. Audit also observed various deficiencies in the functioning of the PSUs.
A review of three years’ audit reports of CAG showed that the PSUs’ losses of Rs 1,320.47 crore and infructuous investments of Rs 333.27 crore were controllable with better management.
“There was tremendous scope to improve their functioning and enhance profits. The PSUs can discharge their role efficiently only if they are financially self-reliant. There is a need for greater professionalism and accountability in their functioning,” it said.