Amidst a strong opposition from industrialists, MSME sector and consumers, the Chamundeshwari Electricity Supply Corporation (CESC), Mysuru, on Wednesday proposed a hike in power tariff by ₹0.5014 a unit across all slabs for the financial year 2022-25 during a public hearing organised by the Karnataka Electricity Regulatory Commission (KERC).
The consumers – domestic and industrial sectors – expressed their objections to the proposal and wanted the CESC’s appeal for tariff revision to be rejected outright. They instead sought a cut in tariff, denouncing the CESC’s move for revision citing revenue deficit.
Instead of a hike, it can consider cutting the tariff by improving its overall performance and minimising administrative expenditure, a few participants said.
The public hearing was chaired by KERC Chairman P. Ravikumar. Member M.D. Ravi was present.
As the hearing began, the CESC Managing Director gave an overview of the CESC’s performance in 2022-23 and the revenue that is required in the coming financial year.
The CESC is in need of a revenue of ₹7,379.89 crore in 2024-25. A revenue of ₹6,940.34 crore is expected amidst a deficit of ₹439.55 crore. To overcome the losses and deficit, tariff revision at ₹0.5014 a unit across all slabs is essential, the CESC stated in its presentation.
Representatives of the industries and others who were present argued that the CESC was burdening the consumers through the hike and was not taking measures for correcting the inefficiencies that the corporation faced. If it brings competency in its performance, addressing certain serious issues, the tariff revision was not required, argued representatives from various sectors/associations.
Mysore Industries Association secretary Suresh Kumar Jain, who spoke on behalf of the industries of Mysuru, Mandya and Chamarajanagar, opposed the hike and urged the KERC to reject the proposal. MIA vice-president P. Vishwanath was present.
Mr. Jain said the hike can destabilise the industries that are already in a crisis. By taking certain measures, the CESC can as well bring down the tariff by 50 paise to ₹1 a unit across all slabs, he said.
He said the government should not pass on the cross subsidy load on the industries and commercial sectors. “Whatever subsidy the government was giving, it should not be recovered from the industries and others. It has to be paid by the government itself,” Mr. Jain argued.
Thanking the KERC for raising the cross subsidy issue with the government, he said over ₹5,000 crore was collected from MSMEs. This can be discontinued, eventually bringing down the cost of supply.
While appealing to the KERC not to consider the hike, the industries sought a separate slab for the small-scale industries.
