The five electricity supply companies (ESCOMs) in Karnataka have applied for yet another increase in tariff. The quality of power supply is steeply deteriorating with severe load-shedding, frequent interruptions and voltage fluctuations, but the ESCOMs keep asking for higher tariffs at every opportunity. As a result, the electricity tariff has increased by 60% in the last 9 years in Karnataka.
The gap between cost and quality of electricity in Karnataka has caused so much damage to the economy of the state that Federation of Karnataka Chambers of Commerce and Industry (FKCCI) has filed a petition before Karnataka Electricity Regulatory Commission seeking the cancellation of license to the five ESCOMs.
Indian Electricity Act 2003 and Karnataka Electricity Reforms Act 1999, which govern the electricity industry in Karnataka, emphasize 'promotion of competition, efficiency and economy', 'economical use of the resources', 'optimum investments', 'interests of the consumers' and 'commercial principles'. These Acts and the National Electricity Policy stress on providing reliable power of specified quality standards in an efficient manner and at reasonable rates for protecting the consumer interests and the environment. If one looks at the history of ESCOMs in the state, it is clear that we are not getting close to these goals.
IE Act mandates that power supply shall not be given to installations without accurate metering. But none of the ESCOMs has ensured accurate metering for all installations.
KER Act stipulates that the tariffs progressively reflect the cost of supply of electricity at an adequate and improving level of efficiency. This goal is still unrealized.
These Acts clearly expect that the cross-subsidy from one class of consumers to another should be eliminated early. But the subsidy by the state government and the cross-subsidy by commercial and industrial consumers are continuing.
'Promotion of competition,efficiency and economy' is not happening as evident by the huge aggregate technical and commercial losses in the state, estimated to be about 30% against best practice of less of than 10%. The overall efficiency of the ESCOMs is amongst the lowest in the world.
Protecting consumer interests and the environment appear to be of very low priority. The number of consumer complaints is steeply increasing and the abuse of nature is unabated in the form additional coal-based and dam-based power stations being planned to mask the huge inefficiency in the industry.
Despite such inefficiency, unaccountability and noncompliance with the directions of the IE Act, it is amazing that the ESCOMs are still in business. The only way things will improve is if the consumers rise up in large number to oppose the tariff increase before KERC or if KERC rules in favour of the FKCCI petition. The last day for consumers to submit their objections to the Chescorp rate hike is Sept. 14.
Shankar Sharma, Member, Mysore Grahakara Parishat