MESCOM to hike tariff to cover revenue gap

Mangaluru, 20 Feb 2021 [Fik/News Sources]: As the citizens are still recuperating from the impacts of Covid-19, MESCOM held a public hearing to propose an average increase in tariff by Rs 1.67 per unit.

In the public hearing, authorities explained that the hike in the tariff is to bridge the revenue gap. The annual revenue requirement for the year 2021-2022 has been estimated at Rs 5,119.61 crore but the revenue from the charges is expected to only garner Rs 4,176.35 crore. The new hike in tariff will cover the estimated difference of Rs 943.26 crore.

The order to increase the tariff is expected to come into effect by the end of March. MESCOM PRO noted that the increase in tariff depends on several factors like an increase in power purchase cost, maintenance cost, and establishment cost.

The move to increase tariffs has drawn heavy criticism from various organisations and representatives. KCCI President, Issac Vas told TOI that power is supplied at far lesser costs in Kerala that is just 20 km away from Mangaluru. He also added that owing to the Covid-19 situation, Kerala did not increase its tariff for the year 2019-2020.