Mescom’s shock for the New Year?
Team Udayavani, Jan 4, 2019, 11:27 AM IST
- 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 1st 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
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Top News
Related Articles More
Cement mixer truck overturns near Ambagilu
BJP stages protest against Karnataka govt over Waqf properties row
Youth attempts suicide after being humiliated in public for wearing ripped jeans in Belthangady
Global Bhagavad Gita Quiz Announced: Registration now open
Kasaragod: Husband murders woman PSI
MUST WATCH
Latest Additions
Teen stabs man to death at railway station in Mumbai after quarrel over local train seat
War has endangered future of 2.5 billion children of world: UP CM Adityanath
UP man gets 10-yr jail term for murder attempt on father
Cement mixer truck overturns near Ambagilu
SC notice to Gujarat govt on Asaram’s plea seeking suspension of sentence in 2013 rape case
Thanks for visiting Udayavani
You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.