Standard Post with Image

Discom's Move to Hike Power Tariff Opposed

  • Challenging the decision of MP Western Power Distribution Company (MPWPDC) to hike the power tariff by 27% from 2012-13, a city-based NGO has filed a complaint with MP Electricity Regulatory Commission alleging that the company's decision was unjust.Convenor of Vikas Drishti Mitra 2050, Kishore Kodwani, alleged that the company manipulated the figures to show losses, whereas the fact was that the company did not incur any loss."Therefore, there is no need to hike the tariff. The decision will have adverse impact on the industrial sector and it would put additional burden on the common man," said Kodwani. He further said that at a time when many companies evinced interest in investing in the city and the region, it was not proper to hike the tariff.
  • As per the complaint, the distribution company claimed to have incurred losses to the tune of Rs 3,000 crore and on that basis, the company wanted to hike the tariff in a bid to fill the loss.However, the complainant alleged that MPWPDC showed inflated operating cost of Rs 1,182 crore and deflated revenue receipts of Rs 1,261 crore. The recovery of Rs 250 core in the form of penalty was allegedly not mentioned in the annual balance sheet. The complainant alleged that the company's account book did not mention the grant of Rs 960 core that it received from the government against the subsidy given to farmers. The grand total of these figures stood at Rs 3,653 crore, claimed Kodwani.
  • "Accordingly, the company is in profit of Rs 653 crore and there is no need to hike the power tariff," said Kodwani.Elaborating his point, he said that for the past several years, consumption had been increasing at a rate of 6.83% per year. In 2010-11, the consumption was 10.558 million units, which rose to 11,807 million units in 2011-12. At this rate, consumption for 2012-13 would be 12,633 million units but the company has shown the expected consumption figure of 14,680 million units, which is 17.34% more than the previous year's figure and demanded Rs 7,272 crore for the state government for purchasing 14,680 million units from the central pool. Here also, Rs 1,261 core more wash quoted than the amount required for purchasing power to meet the actual demand, Kodwani claimed.
  • Similarly, the distribution loss in 2008-09 was 46.64% and it has been brought down to 24.33% in 2011-12. The distribution losses are expected to be just 20% for the year 2012-13. "The distribution losses has been on the decline for past five years. This has pushed the unit consumption of electricity from 9,883 millions units in 2008-09 to 11,807 million units in 2011-12. But amount of electricity units purchased has remained the same."This means expanses were the same but the income increased and the company is claiming to be at loss," alleged Kodwani.Officials at MPWPDC refused to comment on the issue saying that there was no anomalies in the accounts.

Source