KSEB expresses a reservation on the draft regulation
The Kerala State Electricity Board (KSEB) has expressed strong reservations about several key proposals in the draft regulation for the determination of electricity tariffs published by the Kerala State Electricity Regulatory Commission (KSERC).
Some of the proposals are likely to be misused and could lead KSEB to court cases at a later stage, the board noted, presenting its perspective on the KSERC (Terms and Conditions for Determination of the tariff), 2021, during a public hearing on Wednesday. .
Opposing the decision to introduce non-uniform retail supply tariffs for categories of consumers under different distribution licenses, KSEB said the current system of uniform tariffs is in line with pricing policy. It was implemented in 2012 after extensive deliberation. Non-uniform retail prices would have a negative impact on the cross-subsidy mechanism and ultimately lead to higher prices.
If non-uniform tariffs are adopted, the content of cross-subsidies in the tariffs of consumer categories should remain uniform, the KSEB said.
The KSEB also opposed the draft proposal which says the commission can allow the licensee (KSEB) to sell excess electricity to its consumers instead of selling it on the open market or on stock exchanges. electricity. The proposal, according to the KSEB, is fraught with operational and legal issues.
The KSEB is also at risk of losing around 100 crore (at ₹ 2 per unit) due to the loss of the open access fee. In addition, it would also lose additional income from the sale of excess electricity in the market.
In addition, the KSEB has also expressed concern over the decision to use the ‘average cost of purchasing electricity’ rather than the ‘average cost of purchasing common electricity’ (which includes own production costs. of KSEB) to buy the excess energy injected into the system by a “prosumer” renewable energy. According to the KSEB, the additional liability to the KSEB will be in the range of 1.10 to 1.15 per unit.
Industries salute him
Meanwhile, the HT-EHT Industrial Electricity Consumers Association praised the proposal for non-uniform retail tariffs and the proposal to sell excess electricity, calling them “progressive.”
The non-uniform tariffs will reflect the true operational and financial efficiency of distribution licensees, the association said. Neither the Electricity Law of 2003 nor the national tariff policy requires that tariffs be uniform. In the case of excess electricity sales, the association urged the Commission to help put together a workable plan for a win-win situation for consumers and the KSEB.
KSEB employee organizations including the KSEB Leaders Association, KSEB Workers’ Association, Kerala Electricity Employees Confederation and Kerala Electricity Managers Confederation are also opposed to several of the proposals, saying they appear to promote privatization.