Karnataka - Bangalore

KERC chairman unhappy with KPTCL failure to set up fund

Staff Reporter

Bangalore: Karnataka Electricity Regulatory Commission (KERC) Chairman K.P. Pandey on Tuesday expressed anger again over Karnataka Power Transmission Corporation Limited (KPTCL) not implementing the order on setting up a fund with the surplus amount got from increased availability of low-cost hydel energy.

"An order was passed and it has to be implemented. Non-implementation will lead to certain repercussions. You have no choice but to implement the order and set up the fund with the Rs. 629-crore surplus amount," he told KPTCL Managing Director Bharatlal Meena, who is also chairman of the five Electricity Supply Companies (ESCOMs) in the State.

With regard to transmission charge, Mr. Pandey said that KPTCL had no authority to fix it at 26 paise a unit, when KERC had set it at 19.32 paise. "No authority other than KERC can fix the transmission charge," he said and expressed regret over KPTCL's action.

However, it is to be noted that the Appellate Tribunal had said that KPTCL may charge 26 paise a unit and directed KERC to look into the claim at the time of the verification exercise that is taken up at the end of every year.

Earlier, defending the expected revenue from charges for 2008-09, Mr. Meena said that a few objections raised by consumers and consumer bodies were far from the truth and unfounded. KERC had previously allowed only Rs. 1,750 crore investment for KPTCL.

With this, there was a shortage of Rs. 310 crore for KPTCL's works. KPTCL wrote to KERC during November-December 2006. "Unless the gap is filled, it will be difficult for us to clear our liabilities. We have paid Rs. 744 crore to Tannir Bavi. We will have to pay Rs. 130 crore this year. We also owe Rs. 2,000 crore to KPCL as arrears," he said.

Project details

He said that KPTCL had submitted project details to KERC last year. "These projects have a longer gestation period. Some take more than 18 months to be completed. In such cases, the expenditure for these projects have to be included on the expected revenue from charges of the next financial year also," he said.

Mr. Meena said that KPTCL spent Rs. 865 crore, most of which went towards infrastructure improvement. "Of the 340 power stations that we proposed to set up, work on 225 stations is in various stages of completion. Work on all stations will be completed this financial year, which is why our expenditure is projected at Rs. 2,400 crore," he added.

"We have taken proactive measures to give the State and consumers a robust infrastructure. Charges in this regard have to be allowed," he said.

KERC is expected to pass an order regarding KPTCL's expected revenue from charges in a fortnight.

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