Power regulator hearing today ahead of finalising norms on KSEB surcharge

Photo: Representational/ File Image

Thiruvananthapuram: Ahead of fixing the power tariff for the next four years, the Kerala State Electricity Regulatory Commission (KSERC) is set to gather evidence from the public at a key sitting here. The regulator will also finalise the draft rules which empower the Kerala State Electricity Board (KSEB) to collect surcharge on its own without prior authorisation.

The time-frame of three months set by the Central Government and the Supreme Court for finalising the draft rules has come to an end. In this circumstance, the Commission is planning to notify the final norms as soon as possible on the basis of the evidence collected on Wednesday.

The rules governing the privatisation of the board’s power transmission lines will also come into effect soon.

The Commission is yet to take a decision on the surcharge imposed with effect from July 1 last year and March 31, 2023. (The KSEB has been collecting surcharges under the draft rules. The KSEB only needs to obtain the Commission’s approval at the end of the year).

KSEB demand

The KSEB has demanded that a surcharge of 30 paise per unit should be authorised for the period from July 1 to September 30 and 14 paise from October 1 to December 31. The regulator will complete the hearing in this regard soon and issue the relevant orders.

The Commission is yet to conduct a hearing on the KSEB’s demand that 16 paise should be approved as surcharge from January 1 to March 31. The charge effective from April 1 will be collected by the KSEB on its own without prior approval. The Commission has clarified that there is no prohibition on collecting the old and new surcharges together but that the collective amount should not exceed 20 paise per unit.

At the evidence-gathering sessions conducted by the KSERC in Kozhikode, Palakkad, and Kochi, the KSEB had requested changes in the rates suggested earlier. The Commission had directed the board that if any further changes are to be made, the demand could be made during the sitting to be conducted in Thiruvananthapuram.

Consumers from the industrial and domestic sectors had demanded that there should be no increase in the rates in view of the financial difficulties post the Covid pandemic.

Appeal to Tribunal soon

Meanwhile, the KSEB will file an appeal in the Appellate Tribunal against the Commission’s refusal to grant approval for the four long-term contracts that have been signed for buying 465 MW of electricity. A parallel move to float tenders for buying 465 MW of electricity is also in progress. There will be clarity on the electricity tariff only after this process is completed.

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