Kerala

Draft multi-year tariff regulation ready

KSERC plans to implement the regulation for four years from April 1, 2018

The Kerala State Electricity Regulatory Commission (KSERC) will implement a multi-year tariff regulation for four years from April 1, 2018, to March 31, 2022.

Commission chairman Preman Dhinaraj and members told reporters here on Thursday that the tenure of the existing tariff regulation would expire on March 31, 2018, and the new regulation would come into force the next day.

As per the draft regulations issued by the commission, Kerala State Electricity Board (KSEB) and other licencees would have to submit projections for four years comprising expected income, expenditure, and proposals for tariff revision before February 28, 2018.

The commission will examine the projections and approve it with necessary amendments. As per the draft regulation, the expenses of licencees have been classified as controllable and uncontrollable expenses. Power purchase cost, taxes and duties, and inflation have been included in uncontrollable expenses. Operation and maintenance costs, including employees cost, have been included in the second category.

KSEB could furnish details of the surge in expenses beyond its control once in three months and the commission after conducting public hearings will approve it. The regulations have provisions for collecting the additional expenditure as surcharge from customers.

The regulations offer room for a mid-term review after 18 months. The commission would not grant any excess for controllable expenses. There are provisions that offer incentives for licencees who improve their performance and one-third of the gains should be passed on to the consumers.

Mr. Dhanraj said the commission would be performing a balancing act between the licencees and consumers. The proposed regulations would help to attract investments, improve quality of services, and make planning more scientific. It proposes to cut down the transmission loss annually and thus save the funds expended for power purchase.

The commission is planing to conduct a public hearing on the draft regulations at the Ernakulam Town Hall on January 3 and its headquarters here on January 10. Details of the draft regulations could be accessed on www.erckerala.org.

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Printable version | Jun 3, 2020 2:56:33 PM | https://www.thehindu.com/news/national/kerala/draft-multi-year-tariff-regulation-ready/article22319461.ece

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