The Kerala government is likely to take a strong stand against the draft Electricity (Amendment) Rules, 2022, which seek to allow power distribution licensees to automatically recover the additional expenses they incur on fuel and power purchase from the consumers on a monthly basis.
The Union Ministry of Power had sought comments from the States on the draft rules published earlier this month.
Electricity Minister K. Krishnankutty has already come out against the draft proposal. He said that Kerala would oppose it. Such a surcharge that would automatically reflect in the consumer tariffs would burden consumers and create a situation where electricity prices went up every now and then like petrol and diesel prices, he told The Hindu.
State’s reply
Sources said that the Kerala State Electricity Board (KSEB) had been directed to prepare a report on the draft rules as part of drafting the State’s reply to the Centre.
The draft rules propose a Fuel and Power Purchase Adjustment Surcharge (FPPAS) which would replace the present mechanism of thermal fuel surcharge that is periodically imposed by the KSEB on electricity bills.
A major change proposed in the draft rules is that distribution licensees need not seek the approval of the State Electricity Regulatory Commission for collecting FPPAS on a monthly basis. ''The FPPAS shall be calculated and billed to consumers, automatically, without going through regulatory approval process, on a monthly basis, according to the formula prescribed by the State Commission, subject to true-up on an annual basis as decided by the State Commission,'' the draft reads.
Under the present mechanism, the KSEB submits pleas for imposing thermal fuel surcharge on a quarterly basis. The Regulatory Commission finalises a decision on it after hearing the consumers. This oversight will vanish if the proposal is cleared, say power sector experts.
According to the draft, the distribution licensee should bill the FPPAS for a given month in the month that follows. For example, the FPPAS for April should be billed in June. The licencee can put off collecting the surcharge to avoid a tariff shock, but this postponement should not go beyond two months, says the draft.
