Mescom cannot account for power worth Rs. 254 crore

Mescom cannot account for power worth Rs. 254 crore

Mangalore Today News Network

Mangalore, Sep 11: The Mangalore Electricity Supply Company (Mescom) has sought a revision in tariffs for 2011 – 12, claiming that it is unable to account for power worth Rs. 254.77 crore. The Mescom has informed the Karnataka Electricity Regulatory Commission (KREC) that it had purchased 525.77 million units (MU) of energy for its customers, but the customers have not used it.

In its Annual Revenue Requirement (ARR) 2011 – 12, Mescom says that it has paid for 525.77MU energy, but has never received it. A hearing has been scheduled for September 19, during which the company has to explain this lapse.

Mescom’s statements that it cannot account for the power have made consumers furious. Giving voice to general public opinion, Satyanarayana Udupa, the general secretary of Bharathiya Kissan Sangh in Udupi, said that the company owes an explanation to consumers.

Mescom had informed KERC that it had supplied consumers with 4,275.86MU power in 2010 – 11 but the actual consumption was 3,750.09. Mescom has no idea what happened to the remaining 527.77MU. When the commission questioned Mescom, it said that figures could be adjusted slightly to cover up the lapse.

Quoting Mescom’s Annual Revenue Requirement, advocate ShridharPrabhu, who is also a power expert, said that Mescom purchased power for Rs. 1,131.51 and had included the missing Rs. 245.77 crore in that figure. Besides, Mescom has falsely stated that it had purchased power for Rs. 2.88 per unit while actually purchasing it for Rs. 4.67.

Yet another power expert said that Mescom should have admitted that it had purchased power at the rate of Rs. 4.67 per unit and not at Rs. 2.888, which would have enabled them to seek a reduction of Rs. 240.27 crore from their ARR and reduce the burden on consumers by Rs. 88.43 crore.