Signaling worst power situation Kerala Electricity Board to regulate power supply to consumers

Signalling that the power situation in the state is turning to worse, the Kerala State Electricity Board (KSEB) has recommended the State Electricity Regulatory Commission to regulate the supply of power to consumers during 2012-2013. According to KSEB, power usage by the  domestic consumers should be restricted to 300 units a month at normal tariff. Supply at normal tariff to industries and bulk consumers during 2012-2013 should be confined to 85 per cent of the average energy consumed during the previous year. Any additional consumption – if the ceiling is broken, that is – should be charged at market rates, the KSEB has demanded.
The restrictions should be applicable to all categories of consumers except agriculture, orphanages and public lighting, the power utility has told the Commission.
The recommendations accompany the petition on Aggregate Revenue Requirement (ARR) and Expected Revenue from Charges (ERC) for 2012-2013 filed by the KSEB on Friday. Power demand in the state has been increasing by ‘seven to eight per cent annually’ and the demand in 2012-13 cannot be met by the state’s hydel stations or the supply from the Central pool, according to the KSEB.

Transmission constraints in the southern grid have forced the KSEB to depend heavily on liquid fuel stations such as RGCCPP Kayamkulam, BSES Kochi, KPCL, BDPP and KDPP where the variable cost is approximately Rs 10.50 per unit.

This has prompted the KSEB to propose regulation of power consumption of all categories of consumers, says the petition. But the proposed restrictions will not inconvenience the majority of domestic consumers, the power utility maintains.

Hardly 1.40 per cent of the domestic consumers will be affected. Only 1.19 lakh of the 85.38 lakh domestic consumers consume above 300 units. As on March 31, 2011, the KSEB has 1,01,27,941 consumers. For 2012-2013, the KSEB has projected a whopping revenue gap of Rs 3,240.25 crore. Estimated expenses for the fiscal have been pegged at Rs 9,638.12 crore and revenue at Rs 6,397.87 crore.