Power tariff hike proposal opposed

The proposed hike in power tariff in the state has brought out a lot criticism. The Karnataka Industrial Area Manufacturers' Association (KIAMA) has said that the power tariff hike is an irrational decision by the government.

"Mescom has not achieved the quality of service and standards of performance as stipulated by the Karnataka Electricity Regulatory Commission (KERC). It has no control over the power cuts which leads to huge losses to a large number of industries", it complained.

KIAMA has urged the KERC not allow any further increase in tariff "as the Mescom losses are due to inefficiency and mismanagement of the power supply agency alone." It has objected to the method adopted in Mescom "to make a back door entry by getting permission to penalise the industrial consumers."

In an objection filed against the Mescom proposal for increasing the electricity tariff for the year 2005-06, KIAMA said, "Mescom is approaching KERC every year or alternate years with a proposal to increase the tariff without complying with any of the directives of the KERC."

Listing out the failures of the Mescom to comply with the KERC directives, KIAMA General Secretary K Ravindra Prabhu said that the Mescom has failed to bring down the transmission and distribution losses to 7.5 per cent as per the 2003 directive of the KERC and instead has been setting a target of bringing down to 20.24 per cent from 21.20 per cent, a mere reduction of 0.96 per cent. "At this rate, it will take Mescom 13-14 years to comply with the set directive of the KERC."

Mescom has not disclosed the number of existing non-metered installations, category- wise. It has claimed its achievement on the target set by itself. In the street light category LT6(b), it has achieved a target of 58 per cent. It is not known what prevented Mescom in achieving 100 per cent metering in this category where there is no resistance from any body.

Mescom wants to reimpose power factor penalty on installations, which are metered by Electronic Trivector Meters (ETVMs), even though it is barred from penalising the consumers by the apex body, KPTCL since the ETVMs cannot record the PF.

Referring to wheeling charges, the manufacturers' association said, "while Mescom has projected a wheeling of 6,220 million units at a proposed tariff of Rs 1.75 per unit which will fetch Rs.1,088.5 crore, it has not taken this revenue in its projected profit and loss account. Under which heading this income is reflected in the P & L a is also not known."

Therefore, KIAMA has requested KERC to take a serious note of these and call for an explanation from Mescom and put a hold on the proposal till these issues are clarified.