The Hindu : Karnataka / Bangalore News : KPTCL to appeal against KERC order

Online edition of India's National Newspaper
Sunday, May 23, 2004

Karnataka

Karnataka - Bangalore

KPTCL to appeal against KERC order

By Our Staff Reporter

The BESCOM Managing Director, Bharat Lal Meena (right), talking to the KPTCL Chairman and Managing Director, K.N. Shrivastava (left), after the inauguration of the Any-Time Bill Payment Machine (ATP) on Mahatma Gandhi Road in Bangalore on Saturday. T he Principal Energy Secretary, Dilip Rau, is seen. — Photo: V. Sreenivasa Murthy

BANGALORE, MAY 22. Karnataka Power Transmission Corporation Ltd. (KPTCL) will move the High Court of Karnataka, contending that it cannot implement a recent Karnataka Electricity Regulatory Commission (KERC) order directing the electricity supply companies (ESCOMs) not to insist on an additional security deposit from power consumers.

If the order was implemented, KPTCL would lose about Rs. 4,000 crore, the KPTCL Chairman and Managing Director, K.N. Shrivastava, told presspersons here today after inaugurating an Any-Time Bill Payment Machine (ATP) kiosk on Mahatma Gandhi Road.

On Thursday, the KERC had ordered that the ESCOMs should not ask power consumers to pay the additional security deposit. The ESCOMs could seek an additional deposit only if the deposit held by them fell short of the average bill for two months, the commission had ruled. The ESCOMs were collecting a three-month minimum deposit based on average consumption charges.

Mr. Shrivastava said the commission had passed similar orders earlier but they had been challenged in the High Court. The latter had referred the matter back to the commission.

"The KERC has again repeated the same order without considering our plea," he said.

Mr. Shrivastava said KPTCL had stated before the KERC that it was ready to accept two-month minimum deposit with a billing cycle of 15 days for high-tension (HT) consumers, who numbered about 4,000.

"This was a practical solution which would have enabled us to cater for this small group, who are a source of 35 per cent of our income. But the KERC has not considered our plea, he said."

Mr. Shrivastava said that in accordance with the Central Electricity Act, 2004, the ESCOMs would start paying interest on the deposits collected from the customers from June 10. Asked whether KPTCL would give free power to the farmers as announced in States such as Andhra Pradesh, he said: "We can provide free power if the State Government compensates by paying us Rs. 3,600 crore, the burden we will incur if we implement such a move."

He said KPTCL had not purchased power for the past three days from outside sources because of good seasonal rainfall and also because there was a dip in the demand for power across the State.

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