: Kerala State Electricity Board Ltd (KSEBL) is likely to impose a power surcharge or a tariff revision to realise the financial liability of around Rs.200 crore it would incur on signing a two-year power purchase agreement with a private company soon.
Though the revision would have a direct impact on all the 1.10 crore consumers, the 86 lakh domestic consumers who constitute a majority, would be the worst affected.
Against the State government pressure to ink a 10-year pact with Bombay Suburban Electricity Supply (BSES) Kerala Power Ltd, Kochi, the board had proposed to restrict the agreement to two years and also slash the fixed charges by 50 per cent. Even then the board would have to pay Rs.65 crore as annual fixed charges to the company.
In addition, the company has proposed to hike the cost per unit from 62 paise to Rs.1.92. Since the tenure of the agreement expires this month, the board would have to take a decision soon.
Power Department sources told The Hindu here that on signing the agreement, the board would have to file a tariff revision petition before the Kerala State Electricity Regulatory Commission (KSERC) stating the reasons for proposing the hike. The latest amendments to the Electricity Act, 2003 have provisions for annual revision to make up the utility’s loss.
Even if the commission clears the petition, the government reserves the authority to freeze the order.
Since the Assembly elections are due in May 2016, the State government may take a political decision to defer the hike till the elections are over.
But the huge financial commitment would erode the financial base of the board, which is already facing a serious resource crunch.
Hence, the board is likely to move the commission and secure the order for the revision soon after the Assembly elections.
