State Electricity Board for thermal option to tide over power crisis
The Kerala Electricity Regulatory Commission started examining whether it can permit the thermal surcharge concept brought by the Kerala State Electricity Board (KSEB) to get over the difficulties caused by a poor monsoon. The commission held the first of its public hearings on the KSEB's plea here on Saturday. Another hearing is scheduled in Kochi on Monday. The commission is likely to come out with its order immediately after the hearing in Kochi. The KSEB's argument is that the poor monsoon and a drastic cut in Central allocation of power would force it to go out of the budget this year to buy costly energy from naphtha and diesel power stations. Giving a detailed workout of the data involved, its Finance Member Mathew George said the additional financial burden would come to Rs.2,548.48 crore, even with the supply restrictions already in force. The KSEB wants to pass on Rs.1,078.20 crore of the total burden to the consumers as a temporary thermal surcharge and retain the remaining Rs.1,470.28 crore in the records as a 'regulatory asset' (to be bridged through borrowings, perhaps). This 'regulatory asset' can then be recovered from the consumers in the subsequent years through tariff adjustments. Poor domestic consumers drawing up to 40 units of electricity a month, farmers, orphanages and similar institutions for the needy are to be exempted. For other domestic consumers, it is 50 paise a unit for those drawing between 41 and 80 units a month and Re 1 a unit for those drawing between 81 and 300 units. The state has been witnessing a poor monsoon resulting in acute power crisis as the state is dependant primarily on power generated through hydel means. The load shedding enforced and the power cut of 25% on industries has already created unrest in the fledgling industrial situation of the State as the state was on the brink of a new industrial climate with the trade unions from both the left and the right streams willing to support the efforts taken by the government and private entrepreunuers. The load shedding announced by the LDF government has already drained out the positive energy which was witnessed in the industrial circles over the recent times. The association of small and medium industrialists are of the opinion that the state should refrain from going for power cuts and loadshedding and instead concentrate on methods and means to improve the supply of power in the state. Sources close to the industries minister also said that this decision of the KSEB to introduce power cuts in the industrial units would provide the death bells of the industrial units in the state. It is learnt that the government is trying for a broader consensus between political parties ,trade union leaders and social activists for an amicable settlement to tide over the acute power crisis which the state is facing . The steel mill owners are also worried at the power cuts imposed and is of the opinion that the mills have to shut their shops as there are no other options left.
