The Hubli Electricity Supply Company (HESCOM) is currently navigating a significant financial crisis, exacerbated by the failure of urban and rural local bodies to settle electricity bills that amount to several crores of rupees. This financial strain comes even as HESCOM continues to supply free electricity up to 200 units under its ‘Griha Jyoti’ scheme, aimed at supporting lower-income households.
Officials from HESCOM’s Sirsi Circle have reported that around ₹4.98 crore has remained unpaid for years, specifically related to electricity consumed under the National Rural Drinking Water Project (NRDWP). In addition to this, urban and rural local bodies collectively owe ₹33.40 crore for electricity supplied for essential services such as water supply and street lighting.
A senior engineer at HESCOM elaborated on the situation, noting the dual challenges the company faces. “On one hand, we are grappling with staff shortages; on the other, there’s a notable decrease in funding available for the purchase of maintenance equipment and the installation of new lines. Since the ‘Griha Jyoti’ scheme was implemented, our revenue collection from consumers has seen a significant drop,” the engineer explained.
The issue is further compounded by delays in payments from various government departments. The engineer pointed out that the high-capacity pump sets required for drinking water supply schemes consume a considerable amount of electricity. “We haven’t received payments for electricity used in various projects, including the Jal Jeevan Mission, multi-village drinking water schemes, and urban water supply projects. The Rural Development and Panchayat Raj Department alone has accrued over ₹30 lakh in interest charges due to these delayed bill payments,” the official added.
This predicament highlights the broader financial challenges faced by HESCOM as it strives to maintain a balance between fulfilling its social responsibilities and ensuring operational sustainability. The company’s commitment to providing free electricity under the ‘Griha Jyoti’ scheme is commendable; however, the ongoing defaults in payments from local bodies are undermining its financial health.
As the situation continues to unfold, HESCOM officials are advocating for more stringent measures to ensure timely payments from local bodies and government departments. Without a prompt resolution to these outstanding dues, HESCOM’s ability to operate effectively and continue serving the community may be jeopardized.
Moving forward, HESCOM must consider strategies to improve revenue collection while maintaining its commitment to social welfare initiatives. Engaging with local bodies to negotiate payment plans or exploring alternative funding sources may provide avenues to alleviate some of the financial pressure.
The ongoing crisis serves as a critical reminder of the importance of fiscal responsibility within local governance and the need for a collaborative approach to ensure the sustainability of essential services like electricity supply.