The Hindu : Kerala / Thiruvananthapuram News : Poor monsoon may make power tariff hike inevitable

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Monday, Jul 07, 2008
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Kerala

Kerala - Thiruvananthapuram

Poor monsoon may make power tariff hike inevitable

P. Venugopal

KSEB to depend on costly thermal power

Hydroelectric power generation to go down by 50%
Supply from Central grid already under
a cut

THIRUVANANTHAPURAM: Poor rainfall in the State so far this monsoon may lead to a hike in power tariff later this year.

The reason is that the failure of the monsoon will force the Kerala State Electricity Board (KSEB) to increase its dependence on expensive thermal power this year.

A normal monsoon will usually enable the KSEB to generate around 8,000 million units of hydroelectric power. The way matters are turning out this season, the quantum is likely to come down to 4,000 million units, according to a review made by the KSEB a couple of days ago.

The KSEB, at the start of the year, had projected the total energy demand in 2008-09 to reach the level of around 15,800 million units. It had counted on the receipt of 7,300 million units from the Central grid and had planned to bridge the remaining gap of 500 million units by purchasing energy from the naphtha or diesel-based power plants within the State.

Coal shortage in the country has now decreased the availability of the relatively cheaper of the thermal power from the Central grid. The State’s usual share of power from Central stations is already under a cut. The share is likely to come down to around 6,000 million units from the expected level of 7,300 million units.

The possible hydro-power generation of 4,000 million units and the possible receipt of 6,000 million units from the Central stations will mean that the KSEB’s dependence on highly expensive energy from stations that run on naphtha and diesel will go up to the level of around 7,800 million units (from the originally projected level of around 500 million units) to satisfy the demand this year.

“Electricity from such stations cost up to Rs.11.50 a unit now. The KSEB may have to spend around Rs.3,500 crore more than its original estimate of expenses to manage the year,” Electricity Minister A.K. Balan said.

“The poor monsoon, coming on top of the curtailed supply of power from the Central stations, has now put the State into a situation similar to the one in 2002-03, when the then UDF government was forced to impose a 30-minute load-shedding in addition to tariff hike ranging from 50 to 100 per cent,” Mr. Balan told The Hindu.

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