Kerala - Thrissur   

Thrissur corporation to appeal against power authority's order

T. Ramavarman

Directed to pay nearly Rs. 80 crores as arrears and interest

THRISSUR: Thrissur Corporation will file an appeal at the Central Power Appellate Tribunal against the order issued by the Kerala State Electricity Regulatory Authority (KSERA) directing the Corporation to pay the long-pending disputed arrears and interest to the Kerala State Electricity Board (KSEB).

The Mayor, K. Radhakrishnan, told The Hindu here that the Corporation's legal advisers have been directed to locate a legal firm in New Delhi to argue the Corporation's case at the Appellate Authority. He said as per the notice issued by the KSEB, based on the order of the KSERA, the Corporation will have to pay nearly Rs. 80 crores.

Withdrawal of concession

Thrissur Corporation is the only local body in the State that has been given the license to distribute power by procuring power from KSEB even when it was a municipality. Being a licensee, and not a direct consumer, the KSEB has been giving a reduction of 30 per cent in the tariff to the Corporation. However, the KSEB withdrew this concession in 1986 saying that the discount is inherent in the new grid tariff that came into effect then. But the Corporation said it will not accept the `unilateral decision of the KSEB' to withdraw the concession.

The Corporation then decided to deduct 25 per cent while remitting bill amounts issued by the KSEB and the dispute between the Corporation and the KSEB remained unresolved ever since.

High power panel

In the intervening period, a high power committee appointed by the Government, with the Power Secretary as its convener, directed the Corporation to pay the arrears and the interest up to 2002. The KSEB had also filed a petition before the KSERA, constituted as per the Electricity Act 2003, seeking direction from the Authority to the Corporation to pay the full bill amount and arrears after 2003.

The KSERA also directed the Corporation to pay the full bill amount as, according to the Electricity Act 2003, even traders of electricity are treated as customers. It also directed the KSEB to take steps to realise the bill amount from the Corporation within 60 days of issuing the order.

45 days' notice

The Corporation has to file an appeal against the KSERA order before June 18 as the KSEB, in its notice, has given the Corporation 45 days to pay up. As per the KSERA order the KSEB can even disconnect the power supply to the Corporation if the full bill amount is not paid.

The Mayor said the legal consultants have been given Rs. 5 lakhs as advance for filing an appeal at the Appellate Tribunal after locating a legal firm that has the expertise in dealing with power related disputes.

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