Date:07/12/2005 URL: http://www.thehindubusinessline.com/2005/12/07/stories/2005120702441900.htm

Back KSEB pegs revenue gap at Rs 302.7 cr

Our Bureau

Thiruvananthapuram , Dec. 6

THE Kerala State Electricity Board (KSEB) has projected a revenue gap of Rs 302.78 crore for 2006-07.

In a petition submitted to the State Electricity Regulatory Commission (SERC) for approval, the board has shown a net expenditure of Rs 3,780.09 crore and a statutory surplus of Rs. 217.42 crore. Its aggregate revenue requirement (ARR) for the year is Rs 3,997.51 crore. As against this, the total income is projected at Rs 3,694 crore, leaving a revenue gap of Rs 302.78 crore.

At a news conference here on Tuesday, the SERC Chairman, Mr C. Balakrishnan, said that the State Government could, if necessary, bring down the power tariff by supporting KSEB with the required subsidy.

The high-power committee had decided on Monday to ask the State Government to reduce the power tariff. Mr Balakrishnan, however, said that SERC is yet to receive any proposal for a tariff cut from the board.

He said that SERC would seek a response from consumers and other stakeholders on KSEB's petition on ARR. The commission would not accept the board's expenditure claims that are not justifiable, he added.

For the current year, the board had initially projected a revenue gap of Rs 492.25 crore and later revised it to Rs 309.50 crore. On the other hand, the commission had accepted a revenue gap of only Rs 51.31 crore.

It was also of the view that this revenue gap too would disappear with more rains forecast for the year, leading to enough storage in the State's hydel reservoirs. In such an event, the board might even make a profit during the year, the commission said.