Palakkad: Kerala Power Minister K Krishnankutty on Tuesday said electricity rates in the state will not be increased now. He said that the final decision will be taken after the electricity board (KSEB) meeting on Wednesday.
"Neither KSEB nor the government decides about the electricity rate hike. The decision will be made only after approval by the regulatory commission. It (tariff hike) is currently not under consideration," he told reporters here.
As the water level in the reservoirs is low, KSEB will face a crisis if the state does not receive adequate rain. If it rains even for two days, there will not be any need to increase the power tariff," the minister said.
"Ultimately the price is based on the cost of purchase. The government will take steps to avoid upsetting the customer as much as possible. At present, we have to pay high to buy extra electricity. The electricity board meeting on Wednesday will assess the situation," said Krishnankutty.
The Kerala State Electricity Board (KSEB) is in an acute financial crisis as it is forced to buy additional power worth Rs 10 crore a day from outside the state due to deficient rain this season.
This is in contrast to the situation in the last two years when the board made a profit by selling electricity outside. This burden will certainly fall on the shoulders of the people through the increase in rates.
The High Court will consider the case against the hike in rates again on Wednesday. The court has stayed the hike. If the stay is vacated, the Regulatory Commission will issue an order increasing the rates within two to three weeks.
The crisis is caused by a lack of rainfall even after two and a half months since the onset of the monsoon. In June, electricity worth Rs 7-8 crore was purchased daily. Due to the rains in July, it came down to Rs 5–6 crore.
When the production of cheaper hydroelectricity decreases, the board is forced to purchase costly power instead. This additional amount is charged as a surcharge by the users. However, it is already charging a surcharge of 19 paise per unit. The Minister has convened the meeting to discuss what is required to be done in this situation.
