BENGALURU: The modest power tariff hike announced by KERC on Tuesday will not be able to improve the financial health of the Escoms (Electric Supply Companies) - BESCOM, MESCOM, CESC, HESCOM and GESCOM.
KERC had noted a deficit revenue of Rs 2,296 crore of all the Escoms in the financial year 2016. The deficit is expected to increase to Rs 2,616 by the end of the current financial year despite the tariff hike announced on Tuesday. For BESCOM alone, the deficit is expected to be more than Rs 1,000 crore.
The continued increase in the cost of power being purchased from private producers and the rising dues from the government agencies and local bodies like gram panchayats and municipalities have added to the financial woes of the Escoms.
The problem with several gram panchayats and civic bodies is that their grants are not adequate to pay for the cost of street lighting. While new areas are added and electricity consumption increases, the grants to these bodies are not increasing proportionately.
According to sources in the energy department, local bodies owe around Rs 2,000 crore to Escoms.