MESCOM proposes electricity tariff hike for 2025-26

Team Udayavani, Jan 9, 2025, 11:40 AM IST

Mangaluru: MESCOM (Mangalore Electricity Supply Company) has proposed an average tariff hike of Rs 0.70 per unit for 2025-26 to the Karnataka Electricity Regulatory Commission (KERC), signaling a potential increase in electricity rates at the beginning of the new year.

MESCOM cited its inability to meet revenue needs with the current tariffs as the reason for the hike. The proposal has been opened up for public objections.

Currently, the average cost of power supply per unit is Rs 9.23, while the average recovery from the current tariff is Rs 8.53 per unit. This is resulting in a shortfall of Rs 0.70 per unit.

For the financial year ending 2023-24, MESCOM cited that the current tariffs will generate revenue of Rs 5,942.73 crore against an expenditure of Rs 6,310.39 crore, leaving a shortfall of Rs 367.66 crore. For 2025-26, MESCOM estimates a revenue of Rs 5850.81 crore against an actual requirement of Rs 5,961.63 crore. Anticipating a revenue shortfall of Rs 110.82 crore, MESCOM justified the proposed tariff hike.

For the first time, MESCOM has submitted a multi-year tariff revision proposal to KERC, including an increase of Rs 0.70 per unit for 2025-26, Rs 0.37 for 2026-27, and Rs 0.54 for 2027-28. While the proposal covers three years, adjustments may be made annually based on MESCOM’s profits, losses, and operational needs.

MESCOM’s Managing Director, Jayakumar R., mentioned that a revision in the electricity tariff hike is needed and a proposal has been submitted to the Karnataka Electricity Regulatory Commission in this regard.