The Hindu : Front Page : Power panel studies tariff proposals

Online edition of India's National Newspaper
Monday, Jul 27, 2009
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Power panel studies tariff proposals

P. Venugopal

Domestic consumers using power up to 200 units a month not to be affected

THIRUVANANTHAPURAM: The Kerala State Electricity Regulatory Commission (KSERC) is examining a string of proposals from the Kerala State Electricity Board (KSEB) to restructure the tariff pattern for raising additional annual revenue to the tune of around Rs.150 crore. The proposals are also intended to prompt the consumers to reduce the use of electricity during the peak load hours from 6 p.m. to 10 p.m.

The KSERC had, in April this year, assessed that the KSEB would have a revenue gap of Rs.335.30 crore from its operations during 2009-10. The KSEB seeks to cover part of this gap through the proposals, filed on Saturday.

The proposals will not affect low-end domestic consumers using up to 200 units a month. High-end domestic consumers, using above 200 units a month, will be required to pay between 13.6 per cent and 32.9 per cent more than at present for electricity as per one of the proposals.

High-end category

Of the 75 lakh domestic consumers, only less than 2.5 lakh consumers are in the high-end categories. The telescopic pattern of billing (with the per unit rate telescoping to higher levels as consumption levels go up) is proposed to be discarded in their case and replaced with flat rates.

The flat rates proposed for high-end domestic consumers are Rs.3.65, Rs.4.50 and Rs.5 per unit for monthly consumption ranging from 200 to 300 units, 300 to 500 units and above 500 units respectively. The KSEB estimates that it can collect through this proposal Rs.69.47 crore additionally from such consumers (who use electricity extravagantly and are in no need of the support of heavy subsidies) annually. Another proposal is to increase the demand charge by 15 per cent and energy charge by 20 per cent for high-tension category IV commercial consumers, most of whom are rich jewellers, textile showroom owners and shopping complex operators. There are 1,060 such consumers in the State now.

This proposal will bring in an additional annual revenue of Rs.58.94 crore.

The third proposal aims at realising an additional annual revenue of Rs.32.52 crore from bulk customers such as Technopark, Tata Tea (Munnar), Thrissur Corporation, Cochin Port Trust, Special Economic Zones, etc. by increasing the tariff applicable to them by 25 per cent.

The KSEB also proposes a reduction in tariff for the installations of Kerala Water Authority, foregoing an annual revenue of Rs.10 crore. The ‘time-of-the-day’ variable tariff structure for high-tension and extra-high-tension industrial consumers is also proposed to be changed in such a way as to encourage such consumers to cut down their energy use during the peak load hours of the day and increase it during the off-peak late night hours.

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