HESCOM seeks regulatory relief amid ₹188 crore deficit, consumers demand accountability
Hubballi: The Hubli Electricity Supply Company (HESCOM) is facing severe financial stress after reporting a revenue deficit of ₹188 crore for the 2024–25 financial year, prompting the utility to seek regulatory intervention. The Karnataka Electricity Regulatory Commission (KERC) held a public consultation in Hubballi to gather feedback from consumers before taking further action.
HESCOM provides electricity to seven districts in north Karnataka and serves lakhs of consumers across domestic, agricultural and industrial sectors. Despite steady revenue inflow from electricity billing, the company has struggled to maintain financial balance due to rising operational costs and systemic inefficiencies.
The company had earlier projected a deficit of ₹604 crore but later revised its estimate to ₹188 crore after accounting adjustments. In view of the financial strain, HESCOM approached the regulatory commission seeking permission for measures to address the deficit.
The public hearing witnessed widespread criticism from consumers, farmers and industry representatives. Many participants questioned HESCOM’s operational transparency and accused the company of failing to control unnecessary expenditure and revenue losses.
Consumers highlighted several service-related issues, including frequent power outages, delayed transformer repairs and inconsistent electricity supply to agricultural pump sets. Farmers stated that unreliable power supply affects irrigation schedules and leads to crop losses.
Participants also alleged irregularities in infrastructure projects and poor administrative oversight. They urged authorities to investigate financial leakages and hold responsible officials accountable rather than imposing additional financial burden on consumers.
Addressing the gathering, KERC chairman P Ravikumar clarified that the hearing was not aimed at increasing electricity tariffs. He emphasised that the commission’s role was to evaluate HESCOM’s request and assess public concerns before making recommendations.
“We are conducting this consultation to understand public opinion. No decision will be taken without carefully considering the impact on consumers,” he assured.
Energy sector observers noted that power distribution companies across India face growing financial challenges due to rising operational costs, infrastructure maintenance expenses and inefficiencies in billing and collection systems.
They stressed that improving operational efficiency, preventing corruption and adopting modern monitoring systems could significantly improve financial performance without increasing consumer tariffs.The consultation underscored the need for structural reforms within HESCOM to restore financial stability while ensuring reliable and affordable electricity supply to consumers across north Karnataka.
