The Hindu : Kadavoor hints at moderate tariff hike

Online edition of India's National Newspaper
Friday, May 30, 2003

Southern States

Southern States - Kerala

Kadavoor hints at moderate tariff hike

By Our Staff Reporter

PALAKKAD MAY 29. The Kerala State Electricity Board (KSEB), which is running in a monthly loss of Rs.70 crores, is likely to present the Kerala State Electricity Regulatory Commission a strong case for a moderate power tariff hike.

Inaugurating a seminar on `Save Electricity - Save Yourself' organised by the Institution of Engineers (India) here today, the Electricity Minister, Kadavoor Sivadasan, said the KSEB would be presenting its accounts on the cost of production and other aspects of power generation to the Commission within a couple of days.

The monthly earning of the Board was between Rs.250 and Rs.260 crores whereas the expenditure stood at Rs.320 crores. The Board requires an amount of Rs.150 crores monthly for debt service alone. Despite various steps taken by it to cut the cost the monthly deficit continued to be Rs.70 crores.

The Minister said that "there will not be huge increase in the power tariff as the industrialists and the people fear. We will try to avoid the hike as far as possible.''

He said that by taking various scientific and modernisation steps power consumption in general could be brought down by 10 per cent which would save Rs.2,070 crores in the State annually. Ten per cent of the power consumption could be saved without any additional investment. If 10 per cent power was saved there would be a peak load relief of 240 MW. At distribution it would be 460 MW. To produce this much power an investment of Rs.2070 crores was required. So, if 10 per cent of the present consumption of power was reduced, the State could save this huge investment in the power sector, Mr. Sivadasan said.

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