Mescom’s shock for the New Year?

• Proposal to increase unit price by Rs 1.38/unit

Mangaluru: Amidst the lightings to celebrate the New Year, Mescom (Mangalore Electricity Supply Company Limited) has come forward to give its customer a shock by raising its charges. It has sent a proposal to the electricity commission to raise the earlier price per unit by almost Rs 1.38/unit.

A period of 30 days has been provided for the customers to submit any objection to Mescom’s proposal. Later, the proposal will be examined by the electricity commission post which the final decision will be taken. Every year, Mescom along with the five other Escom’s revise their charges bearing in mind their expenses. Last year, within Mescom’s limits, every unit’s price was increased by Rs 1.23.

Lack of income for Mescom

Mescom has calculated the lack in its income it will be facing for the next three years and submitted the report to the Karnataka Electricity Regulatory Commission (KERC). According to the report, in the year 2019-20, Rs 4,153.51 crore is required a yearly income, but as per the current charges, only Rs 3,447.12 crore is expected. Thus there is s deficit of Rs 706.39 crore.

For the year 2020-21, Rs 3,753.02 crore is necessary as income, but as per the current charges, Rs 3,541.43 crore is expected leading to a deficit of Rs 211 crore. For the year 2021-22, Rs 3,973.74 crore is required, but according to the current charges, the expected amount is Rs 3,639.49 crore with a deficit of Rs 33.25 crore, argues Mescom.

Mescom’s reasons for increasing the prices

It is not being possible for Mescom to fulfill its necessities based on the charges being levied as of April 1^st 2018. Other than paying for the charges in connection to the power being purchased, it will not be impossible to fulfill the increase in demand for electricity. Estimating the price for every unit to be at Rs 4.09 for the year 2019-20 (last year the price was Rs 3.37), the price of purchase is going to rise this time. More income is required to strengthen the distribution network and to manage uncertain occurrences. Specially, to eliminate the lack between the necessary income and expected income, the revision of charges is inevitable.

Meeting next month

The proposal has been sent with the suggestion of increasing the price for every unit by Rs 1.38. During the next month, the commission will conduct a public meeting in this connection. Later, the final decision of the increase of prices will be decided, informed Snehal R, Managing Director, Mescom

Article by Dinesh Ira translated into English by Aaron Dmello