FY 2024-25: CESC seeks KERC nod to bridge revenue deficit

Mysuru: Chamundeshwari Electricity Supply Corporation (CESC) submitted a proposal to Karnataka Electricity Regulatory Commission (KERC), seeking approval to bridge a net revenue deficit of Rs 528.1 crore for 2024-25 financial year. The utility cited increased power procurement costs and expenditure incurred in ensuring quality supply to consumers as key reasons for the shortfall.The proposal was presented during a public hearing on the Annual Performance Review (APR) for 2024-25, held at the ZP Hall here under the chairmanship of KERC chairman P Ravikumar.CESC MD KM Munigopala Raju outlined CESC's performance and financial position while requesting permission to recover the deficit.Clarifying the purpose of the meeting, the KERC chairman stated that the hearing was confined to reviewing performance and was not related to any tariff hike. He noted that electricity tariffs, which were earlier revised annually, are now reviewed once every three years. He added that a separate proposal seeking a tariff increase for commercial and industrial consumers for 2026-27 would be discussed on Feb 25.According to CESC, against the approved 8,428.8 million units (MU), actual consumption stood at 8,447.4 MU, a marginal rise of 0.2%. However, revenue collection fell short, with Rs 7,173.3 crore realised against the projected Rs 7,591.2 crore, a gap of 5.8%. Rising interest and finance costs, which increased from Rs 424.1 crore to Rs 638.9 crore, also contributed to the deficit.Highlighting operational achievements, the MD said Rs 200 crore was saved through improved revenue measures. Distribution losses were reduced from 9.4% to 8.8%, 705 11 kV lines were maintained, 20,000 transformers were serviced, and over 40,000 hazardous installations were repaired. Progress was also reported under solar and rural electrification schemes.KERC member HK Jagadish was present.