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Kerala Cabinet nod for power tariff hike

By Our Special Correspondent

THIRUVANANTHAPURAM OCT. 9. The Kerala Cabinet on Wednesday approved the proposal to increase power tariffs for domestic consumers by 22 per cent to 50 per cent with effect from October 1.

Tariffs for industries go up by 50 paise per unit. There will be a 20 per cent increase for all categories of consumers excluding commercial and agriculture. For commercial consumers, the fixed charges will go up.

For single-phase connections, the fixed charges will go up from Rs. 30 to Rs. 50 per KW per month. For three-phase connections, the increase will be from Rs. 55 to Rs. 100 per KW.

Energy charges will be increased for Low Tension (LT) Commercial 7B category of consumers from 2.45 a unit to Rs. 3.50 a unit. LT Commercial 7D will be merged with LT Commercial 7A.

Half-an-hour cyclic loadshedding, which is already in effect in towns and rural areas, will be extended to the cities (Thiruvananthapuram, Kochi, Kozhikode, Kollam and Thrissur) from tomorrow.

The increase in tariff will be 25 paise a unit for consumers using up to 40 units a month. (Consumers using up to 15 units get power free of charge).

Consumers using 41 to 80 units and 81 to 120 units a month will have to pay 50 paise and 75 paise additionally per unit. The increase will be Re.1 a unit for those consuming 120 units a month.

The new rates are designed to take away subsidies at the middle levels of consumption. As a result, the increase in tariffs will be 50 per cent for those consuming 121 to 150 units a month while the increase will be only less than 25 per cent for those consuming above 300 units a month.

The Chief Minister, A. K. Antony, told presspersons after the Cabinet meeting that the revision of tariffs would fetch an additional revenue of Rs. 35 crores a month to the KSEB.

This, however, would bridge only a part of the Board's losses which stood at Rs. 184 crores a month.

He said the electricity duty, which is ten per cent of the tariff, would not be increased in proportion to the increase in tariffs. (The duty would be calculated as ten per cent of the old rates.)

The proposal to increase tariffs for power used for agricultural purposes by 25 paise a unit had been dropped.

Mr. Antony said a number of short-term measures would be taken to improve the revenues of the Board. All faulty metres would be replaced before March 31.

An ordinance would be promulgated to check power thefts. Collection of arrears would be intensified.

Billing would be computerised. A ten-per cent reduction would be effected in administrative expenses of the Board. Subsidised power supply to employees of the Board in project areas would be discontinued. These measures would, however, bring in only Rs. 20 crores.

He said tenders would be called immediately for setting up 60 mini-hydel projects in the private sector. These would be placed before the Cabinet in the first week of January for approval. These projects were to be completed in three years.

Besides, steps would be taken for adding 200 MW by taking up the Thottiyar II and Pallivasal extension projects. A total addition of 1944 MW was planned through these projects in four years. Legal steps would be taken for getting clearance for the Athirappally project.

The Government, he said, had no money to subsidise the Board. The Cabinet had not taken any decision on this.

He said there would be a shortfall of two million units a day even if all the thermal power units in the State were operated.

There was a limit in the quantum of power that could be availed from the Central pool for want of transmission lines.

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