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KSEB seeks fresh steps for cost recovery

P. Venugopal

It says northeast monsoon is so far disappointing
Storage in reservoirs worse than that in 2004

THIRUVANANTHAPURAM: The Kerala State Electricity Board (KSEB) has indicated the necessity of imposing another hike in electricity charges to help it avoid a financial crisis.

The KSEB described its difficulties in a submission to Kerala State Electricity Regulatory Commission (KSERC) at a public hearing called here on Saturday to review the power position in the State.

Submission to KSERC

The crux of the submission is this: the northeast monsoon so far too has been a disappointment. The storage in the reservoirs is worse than that in 2004, a severe drought year. The Central stations from where the State receives power are all running far below their capacity due to coal and lignite shortage. This means increased dependence on costly electricity from stations running on liquid fuels.

The KSEB said the ongoing restrictions in power supply and the 50-paise per unit thermal surcharge would help bridge only part of the huge difference between expenses and revenue. The net additional liability till the end of September came to Rs.347.50, notwithstanding the supply restrictions and the existing surcharge.

Costly electricity

Projecting the emerging situation, the KSEB said it would have to buy 10.72 million units of costly electricity from liquid fuel stations additionally on a daily basis (average) to keep the show going during the rest of the year if the existing supply restrictions were withdrawn. This means spending roughly Rs.8.2 crore additionally daily. The liability would come down only partially if the present supply restrictions and thermal surcharge were continued.

Though the submission did not mention it in so many words, the KSEB’s request to KSERC was not only to allow it to continue the existing supply restrictions and thermal surcharge, but also to consider increasing both.

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