Mangaluru: Power consumers under Mangalore Electricity Supply Company (Mescom) may have to brace for a hike in power tariff come April 1. This is thanks to a move by Mescom, which in its tariff filing before the Karnataka Electricity Regulatory Commission (KERC) for 2020-21, has sought upward revision of 62 paise per unit of power that is sells to its customers spread across Shivamogga, Udupi, Dakshina Kannada and Chikkamagaluru.
Mescom, in its tariff filings, stated that the average cost of supply is Rs 7.6/unit while the average revenue realisation is Rs 7/unit, leaving it with a deficit of 62 paise. The company will debate its case for this upward revision before KERC at the mandatory public hearing that is scheduled at the office of the deputy commissioner here for February 13. The company as on date has received 12 objections to its tariff filings directly, and others are with KERC.
Incidentally, 62 paise hike in power cost for 2020-21 sought is less than Rs 1.4/unit it sought in 2019-20.
The KERC in its tariff order for 2019-20 allowed Mescom to hike the price by 33 paise per unit. The projected annual revenue requirement and expected revenue from existing tariff charges for Mescom for 2020-21 as per tariff order 2019 is Rs 3884.8 crore against revised estimation of Rs 4251.4 crore, leaving it with a deficit of Rs 346.1 crore.
Sources in Mescom, privy to the tariff filings before the KERC, told TOI that with the average load growth across four revenue districts under its jurisdiction in the past five years being 2%-3% against 5%-6% in five years prior to that. Against total consumers across categories of 23 lakh in 2017-18, the company added 1 lakh new consumers in the following fiscal, and this has been approximately half the consumer growth registered in 2018-19 as on date.
On the moderate growth in consumer base and growth in load, sources said this is in keeping with the general trend across power supply companies in Karnataka. Against 4956.9 million units (mu) of power sold in 2018-19, the company is looking at projected sale of 5596.2 mu of power during 2020-21.
Most of this growth in power sales will come from domestic consumers who account for 65%-70% of its consumer base, IP sets 15%, commercial 9% and industrial 0.1%.
The move by Mescom to pare down its transmission and distribution losses from 11.3% in 2017-18 to 10.5% in 2018-19, is expected to come down further in 2019-20, increasing awareness among consumers on power saving measures and use of star rated equipment too has led to a plateauing of power consumption.
With focus on quality power supply, the company is doing everything in its power to meet KERC directions in tariff orders, the sources said.
Mescom, in its tariff filings, stated that the average cost of supply is Rs 7.6/unit while the average revenue realisation is Rs 7/unit, leaving it with a deficit of 62 paise. The company will debate its case for this upward revision before KERC at the mandatory public hearing that is scheduled at the office of the deputy commissioner here for February 13. The company as on date has received 12 objections to its tariff filings directly, and others are with KERC.
Incidentally, 62 paise hike in power cost for 2020-21 sought is less than Rs 1.4/unit it sought in 2019-20.
The KERC in its tariff order for 2019-20 allowed Mescom to hike the price by 33 paise per unit. The projected annual revenue requirement and expected revenue from existing tariff charges for Mescom for 2020-21 as per tariff order 2019 is Rs 3884.8 crore against revised estimation of Rs 4251.4 crore, leaving it with a deficit of Rs 346.1 crore.
Sources in Mescom, privy to the tariff filings before the KERC, told TOI that with the average load growth across four revenue districts under its jurisdiction in the past five years being 2%-3% against 5%-6% in five years prior to that. Against total consumers across categories of 23 lakh in 2017-18, the company added 1 lakh new consumers in the following fiscal, and this has been approximately half the consumer growth registered in 2018-19 as on date.
On the moderate growth in consumer base and growth in load, sources said this is in keeping with the general trend across power supply companies in Karnataka. Against 4956.9 million units (mu) of power sold in 2018-19, the company is looking at projected sale of 5596.2 mu of power during 2020-21.
Most of this growth in power sales will come from domestic consumers who account for 65%-70% of its consumer base, IP sets 15%, commercial 9% and industrial 0.1%.
The move by Mescom to pare down its transmission and distribution losses from 11.3% in 2017-18 to 10.5% in 2018-19, is expected to come down further in 2019-20, increasing awareness among consumers on power saving measures and use of star rated equipment too has led to a plateauing of power consumption.
With focus on quality power supply, the company is doing everything in its power to meet KERC directions in tariff orders, the sources said.
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