The Hindu : Kerala News : UDF opposes move to increase power tariff

Online edition of India's National Newspaper
Wednesday, Oct 31, 2007
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Kerala

Kerala

UDF opposes move to increase power tariff

Special Correspondent

Do not impose additional burden on people: Thankachan

Collect arrears
from industrial
consumers: UDF
Steps sought
to check
power theft

Thiruvananthapuram: The United Democratic Front (UDF) has expressed strong opposition to the reported move to hike power tariff as the Kerala State Electricity Board (KSEB) was in a financially sound position.

Reacting to Power Minister A.K. Balan’s statement on power hike, UDF convener P.P. Thankachan said the Oommen Chandy government had reduced the tariff for domestic consumers at the rate of 20 paise per unit as the KSEB had started making profits.

An estimated 70 lakh domestic consumers benefited from the decision. According to the figures the KSEB had submitted before the Kerala State Electricity Regulatory Commission, the Board made profits to the tune of Rs.101 crore in 2005-06.

This went up to Rs.217 crore in 2006-07. In 2005-06, the Board earned Rs.147 crore by way of power sale to neighbouring States. This year, it had gone up to Rs.533 crore.

The KSEB’s total revenue was Rs.3783 crore in 2005-06 and it had gone up to Rs.4495 crore this year. Also, the KSEB had to incur only a meagre burden on account of pay revision and there was no need to hike charges on this account, Mr. Thankachan said.

The people of Kerala were reeling under unprecedented rise in prices of essential commodities. A power tariff hike would impose additional burden. The Minister should concentrate on collecting arrears from industrial consumers and take effective steps to prevent power theft to mobilise additional resources, the UDF convenor said.

The KSEB should also take steps to recover arrears from the Water Resources and Agriculture Departments as part of its mobilisation efforts, Mr. Thankachan said. Moreover, Kerala had received copious rain this year and the storage position in the dams was better than previous years, he said.

Mr. Thankachan wanted the Electricity Minister to clarify why he had retracted from his assurances given in the Assembly that the Government would not revise power tariff. Since the situation did not warrant a hike, the UDF would strongly oppose any move in that direction, he said.

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