The Kerala State Electricity Board (KSEB) is eyeing stringent measures against government departments and public sector undertakings, including the Kerala Water Authority (KWA), that have run up huge arrears on their power bills.
The director board of the KSEB has decided to seek the government’s permission to start disconnection of power supply to government institutions, including KWA, that have arrears.
The board has decided to “seek permission to initiate steps with effect from January 2024 as per the Supply Code to effect disconnection of power supply to government department consumers and PSUs, including KWA connections (except government hospitals), having current charge arrears,” a January 4 order notes.
According to the order, the KSEB itself is “undergoing severe financial crisis” on account of various factors, including higher power purchase costs.
The KWA is the single biggest defaulter on the KSEB list and, in a bid to resolve the matter, the government gave the go-ahead to open an escrow account to settle the dues. But the KWA has been reluctant to comply with this directive, according to KSEB officials.
“Electricity charge dues of the KWA are accumulating at ₹37 crore per month which will increase once the tariff order is approved by the Kerala State Electricity Regulatory Commission for the forthcoming years. Accumulating arrears of the KWA contribute a major portion of receivables of the KSEB,” according to the KSEB.
As of June 30, 2023 State government departments owed the KSEB ₹141.43 crore, and State PSUs, including the KWA, ₹1,768.80 crore. Although the KSEB launched a one-time settlement scheme last year to recover arrears, ‘meagre progress’ was made in the recovery of arrears, the regulatory commission recently observed.
