Date:02/09/2008 URL: http://www.thehindu.com/2008/09/02/stories/2008090257480100.htm

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KSEB for tariff hike or supply curbs

Special Correspondent

Board finds recently introduced thermal surcharge, restrictions not sufficient

Makes the submission at a public hearing
Fears it will go bankrupt if steps are not taken

THIRUVANANTHAPURAM: The Kerala State Electricity Board (KSEB) has sought a further increase in power tariff or further restrictions on power supply to help it tide over the financial difficulties caused by a poor monsoon.

The KSEB made the submission to the Kerala State Electricity Regulatory Commission (KSERC) at a public hearing called here on Monday to review the power position in the State. Representatives of High Tension (HT) and Extra High Tension (EHT) consumers attended the hearing.

Making a detailed presentation, the KSEB said the present supply restrictions and the imposition of a thermal surcharge would not be enough for it to handle the crisis.

Hydel position

The overall hydel position in the State has not improved since the KSERC hearing early last month. Despite load-shedding, supply restrictions and the imposition of the thermal surcharge, energy consumption has not come down to expected levels. The availability of power from Central generating stations also has come down further from the reduced level reported by the KSEB at the time of the last hearing.

Under the prevailing energy availability and consumption levels, the KSEB would have to buy 1,108.11 million units of power additionally from stations operating on costly liquid fuels during the rest of the current ‘rain year’ (extending till May 2009).

In other words, it would have to buy 4.56 million units of costly power additionally on a daily basis to meet the demand till May 2009.

The KSEB wants the additional cost involved to be passed on to consumers or new supply restrictions imposed to save 1,108.11 million units.

The KSEB submitted that if a decision on either further supply restrictions or a tariff increase was not taken immediately, it would go bankrupt. By the end of October itself, the KSEB’s finances would suffer a dent of Rs.856.70 crore if this was not done immediately.

The Confederation of Indian Industry submitted that both solutions proposed by the KSEB would turn the industries in the State sick.