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Cesc Cuddles Up To Public Ahead Of Report

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Sourav Majumdar BSCAL
Last Updated : Jan 22 1998 | 12:00 AM IST

In a fresh initiative, CESC yesterday mounted a major public relations offensive aimed at wooing back the consumer into its fold.

The PR blitzkrieg also seeks to clarify controversial issues -- from fuel surcharge and its tussle with the state power department to its tariff rates.

The company has inserted a detailed message from managing director Sumantra Banerjee, in the form of an advertisement in the local media, explaining the reasons for the high bills and the company's view on the controversial fuel surcharge spat with the state government.

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It has also sought to compare its tariff rates with those charged by BSES in Mumbai, KEB in Bangalore, TNEB in Chennai and AEC in Ahmedabad.

The PR move is being seen in corporate circles as one which seeks to deal directly with the public, ahead of the formal release of the S R Batliboi comprehensive audit report on fuel and non-fuel data.

It is believed that the report has not recommended the return of money to the consumers, which is one reason why the power utility could be aiming to talk to consumers through the advertisements and explain its side of the story.

The company, thereby, is apparently undertaking an effort to mitigate and pre-empt adverse public opinion from consumers who were earlier led to believe that they would get back substantial funds from CESC, since the power department felt they had overcharged consumers.

The CESC action also comes at a time when the company is locked in a grim battle with the state power department and its minister Sankar Sen, and a reported move is also on to try and revoke the company's license.

In the advertisement, Banerjee categorically points out: "I would like to assure you that for a utility, excess profits are just not possible under law." He says all utilities, including CESC, recover fuel cost increases on a no profit basis through fuel surcharge.

Coal, oil and railway freight have seen steep increases in prices with corresponding increases in fuel surcharge. While coal prices increased by 215 per cent, railway freight went up 164 per cent, whereas the fuel surcharge increase required by CESC is 189 per cent, Banerjee contends in the advertisement.

The message from Banerjee also touches upon the reasons leading to the setting up of the Deb Kumar Bose committee on fuel surcharge and the events leading to the commissioning of the Batliboi report.

The company also explains how its tariff compares with that of other cities, underscoring the fact that tariffs charged by CESC compares well and is, in many cases, lower than others.

Banerjee also says that CESC's plant load factor (PLF) stands at 82 per cent so far in 1997-98, against a national average of 63 per cent.

The company has also acknowledged the fact that while its transmission and distribution (T&D) losses of 18.90 per cent compare favourably with the national average (21.13 per cent) and with metros like Delhi, Ahmedabad etc., its needs to reduce it further, since BSES's losses are even lower.

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First Published: Jan 22 1998 | 12:00 AM IST

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